Net Cash flow from Operating Activities ($110,775)
Investing Activities ($31,800)
Financing Activities ($120,000)
1. Credit sales were $250,000. The beginning receivables balance was $87,000 and the ending balance was $83,000.
2. Salaries expense for the period was $56,000. The beginning salaries payable balance was $3,500 and the ending balance was $2,000.
3. Other operating expenses for the period was $56,000. The beginning operating expense payable balance was $4,500 and the ending balance was $8,500.
4. Recorded $19,500 of depreciation expense. The beginning and ending balances in the accumulated depreciation account were $14,000 and $33,500 respectively.
5. The equipment account had beginning and ending balances of $210,000 and $240,000, respectively. The increase was caused by the cash purchase of equipment.
6. The beginning and ending balances in the notes payable account were $50,000 and $150,000, respectively. The increase was caused by additional cash borrowing.
7. There was $6,000 of interest expense reported on the income statement. The beginning and ending balances in the interest payable account were $1,500 and $1,000, respectively.
8. The beginning and ending merchandise inventory account balances were $90,000 and $108,000, respectively. The company sold merchandise with a cost of $156,000(cost of goods sold for the period was $156,000). The beginning and ending balances of accounts payable were $9,500 and $11,500 respectively.
9. The beginning and ending balances of notes receivable were $5,000 and $10,000, respectively. The increase resulted from a cash loan to one of the company's employees.
10. The beginning and ending balances of the common stock account were $100,000 and $120,000, respectively. The increase was caused by the issue of common stock for cash.
11. Land had beginning and ending balances of $50,000 and $41,000, respectively. Land that cost $9,000 was sold for $12,200, resulting in a gain of $3,200.
12. The tax expense for the period was $7,000. The taxes payable account had a $950 beginning balance and an $875 ending balance.
13. The investments account had beginning and ending balances of $25,000 and $29,000, respectively. The company purchased investments for $18,000 cash during the period and investments that cost $14,000 were sold for $9,000 resulting in a $5,000 loss.
The solution explains how to prepare a statement of cash flows for Store Company
Statement of Cash Flows: Time for change! SFAS No. 95
See attached file.
As contained in the Week Four electronic reserve readings article readings, this article, Broome, O. W. (2004, March/April). Statement of cash flows: Time for change! Financial Analysts Journal, 60(2), 16. , describes the current SFAS No. 95 requirements for the statement of cash flows, cites recent cases of abuse and disinformation involving the statement, and makes significant recommendations for improving the statement. Based on the comments in the article do you think the three sections of the statement of cash flows provide enough information for the reader? Of the three which provides the most information or is this an 'it depends' answer?View Full Posting Details