Explore BrainMass

Explore BrainMass

    Statement of Cash Flows

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Additional data:
    1. Dividends declared and paid were $25,000
    2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
    3. All depreciation expense is in the selling expense category.
    4. All sales and purchases are on account.
    a. Prepare a statement of cash flows using the indirect method.
    b. Compute these cash-basis measures:
    1. Current cash debt coverage ratio.
    2. Cash debt coverage ratio.
    3. Free cash flow.
    Notes in the margin:
    a. Cash from operations $33,500

    © BrainMass Inc. brainmass.com November 30, 2021, 2:21 am ad1c9bdddf


    Solution Preview

    Please see the attached file.

    Statement of Cash Flows
    For the Year Ended December 31, 2007

    Cash flows from operating activities
    Net income 32,000
    Adjustments to reconcile net income
      to net cash provided by operating
    Depreciation expense 14,500 Depreciation is non cash and so add back. Change in accumulated depreciation =5,000+add accumulated depreciation on equipment sold=9,500. Total ...

    Solution Summary

    The solution explains how to prepare a statement of cash flows using the indirect method for Weller Company