Exercise 11-8 (Algo) Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional Information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 2024 Cash Flows from Operating Activities $114,250 79,200 98,000 4,600 Additional Information for 2024: 1. Net Income is $72,000. 2. The company purchases $117,000 in equipment. No equipment was sold. 3. Depreciation expense is $157,000. 4. The company repays $107,500 in notes payable. 5. The company declares and pays a cash dividend of $26,500. Adjustments to reconcile net income to net cash flows from operating activities 495,000 802,000 (431,000) $1,162,050 $102,000 6,450 8,600 107,500 715,000 222,500 $1,162,050 2023 $128,400 93,500 82,700 2,300 Required: Prepare the statement of cash flows using the Indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be Indicated with a minus sign.) 495,000 685,000 (274,000) $1,212,900 $87,700 12,900 5,300 215,000 715,000 177,000 $1,212,900
Exercise 11-8 (Algo) Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional Information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity PLASMA SCREENS CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 2024 Cash Flows from Operating Activities $114,250 79,200 98,000 4,600 Additional Information for 2024: 1. Net Income is $72,000. 2. The company purchases $117,000 in equipment. No equipment was sold. 3. Depreciation expense is $157,000. 4. The company repays $107,500 in notes payable. 5. The company declares and pays a cash dividend of $26,500. Adjustments to reconcile net income to net cash flows from operating activities 495,000 802,000 (431,000) $1,162,050 $102,000 6,450 8,600 107,500 715,000 222,500 $1,162,050 2023 $128,400 93,500 82,700 2,300 Required: Prepare the statement of cash flows using the Indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be Indicated with a minus sign.) 495,000 685,000 (274,000) $1,212,900 $87,700 12,900 5,300 215,000 715,000 177,000 $1,212,900
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
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