Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $58,950. b. Paid $10,600 on the long-term note payable. c. Issued new shares of stock for $32,700 cash. d. Dividends of $13,550 were declared and paid. e. Other expenses all relate to wages. Current Year Prior Year $ 64,750 $ 63,400 15,450 22,650 209,350 (59,300) $ 252,900 $ 9,200 2,200 60,500 98,700 82,300 22,650 18,100 150,400 (45,850) $ 208,700 $ 19,400 2,800 71,100 66,000 49,400 $ 252,900 $ 208,700 $ 196,000 93,000 13,450 43,100 $ 46,450 f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts.
Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $58,950. b. Paid $10,600 on the long-term note payable. c. Issued new shares of stock for $32,700 cash. d. Dividends of $13,550 were declared and paid. e. Other expenses all relate to wages. Current Year Prior Year $ 64,750 $ 63,400 15,450 22,650 209,350 (59,300) $ 252,900 $ 9,200 2,200 60,500 98,700 82,300 22,650 18,100 150,400 (45,850) $ 208,700 $ 19,400 2,800 71,100 66,000 49,400 $ 252,900 $ 208,700 $ 196,000 93,000 13,450 43,100 $ 46,450 f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. Note: List cash outflows as negative amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized
as follows:
Balance sheet at December 31
Cash
Accounts receivable
Merchandise inventory
Property and equipment
Less: Accumulated depreciation
Accounts payable
Wages payable
Note payable, long-term
Common stock and additional paid-in capital
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Depreciation expense
Other expenses
Net income
Additional Data:
a. Bought equipment for cash, $58,950.
b. Paid $10,600 on the long-term note payable.
c. Issued new shares of stock for $32,700 cash.
d. Dividends of $13,550 were declared and paid.
e. Other expenses all relate to wages.
Current Year Prior Year
$ 64,750
$ 63,400
15,450
22,650
209,350
(59,300)
$ 252,900
$ 9,200
2,200
60,500
98,700
82,300
22,650
18,100
150,400
(45,850)
$ 208,700
$ 19,400
2,800
71,100
66,000
49,400
$ 252,900
$ 208,700
$ 196,000
93,000
13,450
43,100
$ 46,450
f. Accounts payable includes only inventory purchases made on credit.
Required:
1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year.
Note: List cash outflows as negative amounts.
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