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Build Statement of Cash Flows (Indirect Method) - Flagtown Company

1. Build a Statement of Cash Flows using the Indirect Method

2. Determine Income Tax owed and amount paid to Vendors

Please see attachment.

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Flagtown Company's Balance Sheet Ending Beginning Increase Activity
Balance Balance (Decrease)
Cash $ 49,000 $ 22,000 27,000
Accounts receivable 50,000 71,000 -21,000 Operating
Inventory 84,000 52,000 32,000 Operating Questions:
Prepaid expenses 17,000 13,000 4,000 Operating
Long-term investments 240,000 180,000 60,000 Investing Construct a "Statement of Cash Flows" using the Indirect Method.
Plant and equipment 430,000 430,000 0 Investing
Accumulated depreciation (277,000) (237,000) 40,000 Operating What amount was paid to vendors for Inventory Purchases? 32,000
Total assets $593,000 $531,000
How much was paid in Income Taxes? 39,000
Accounts payable $ 43,000 $ 61,000 -18,000 Operating
Accrued liabilities 33,000 19,000 14,000 Operating
Taxes payable 37,000 25,000 12,000 Operating
Bonds payable 110,000 160,000 -50,000 Financing
Deferred taxes 31,000 19,000 12,000 Operating
Common stock 70,000 50,000 20,000 Financing
Retained earnings ...

Solution Summary

This solution is comprised of a detailed explanation to build a Statement of Cash Flows using the Indirect Method and determine Income Tax owed and amount paid to Vendors.

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