Indirect Method - Cash flow statement
Sean Seymour Company
Comparative bal...
Indirect Method - Cash flow statement
Sean Seymour Company
Comparative balance sheet - December 31
Assets: 20x2 20x1
Cash $26,000 $13,000
Accounts receivable 18,000 14,000
Inventories 38,000 35,000
Property, Plant & Equip. 70,000 78,000
Accumulated depreciation ( 30,000) ( 24,000)
122,000 116,000
Liabilities & Stockholders’
Equity:
Accounts payable 29,000 33,000
Income taxes payable 15,000 20,000
Bonds payable 20,000 10,000
Common stock 25,000 25,000
Retained earnings 33,000 28,000
122,000 116,000
Sean Seymour Co.
Income statement for the year ended 12/31/x2
Sales $240,000
Less:
COGS 180,000
Selling 28,000
Admin expenses 6,000
Income taxes 7,000
Interest expense 2,000 223,000
Net Income 17,000
ï‚· Dividends of $12,000 were declared and paid
ï‚· During the year, equipment was sold for $10,000 cash. This equipment
cost $15,000 originally & had accumulated depreciation of $5,000 at the time of
sale.
ï‚· All depreciation expense, $11,000, is in the selling expense category
ï‚· All sales and purchases are on account
ï‚· Additional equipment was purchased for $7,000 cash
Required: Prepare a statement of cash flows using the indirect method
Balance Reconciling Items 20xx Balance Check Balance
Debits 12/31/20xx Debits Credits 12/31/20xx 12/31/20xx
Cash Sean Seymour
Accounts receivable Cash Flow Statement
Inventory 12/31/20xx
Plant Assets
Operating Activities:
Credits
Accumulated Depreciation
Accounts payable
Income taxes payable
Bonds payable
Capital stock
Retained earnings Cash Provided by (Used in) Operating Activities
- - Investing Activities:
Statement of Cash Flow Effects
Operating activities
Answers: 1
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