Hunter Company is developing its annual financial statements at December 31, 2015. The statements are...

80.2K

Verified Solution

Question

Accounting

Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

2015 2014
Balance Sheet at December 31
Cash $ 45,330 $ 16,500
Accounts Receivable 24,300 26,000
Inventory 27,300 33,000
Equipment 107,700 99,000
Accumulated DepreciationEquipment (35,800 ) (28,500 )
$ 168,830 $ 146,000
Accounts Payable $ 23,200 $ 20,500
Salaries and Wages Payable 830 1,000
Note Payable (long-term) 34,000 45,000
Common Stock 78,500 57,000
Retained Earnings 32,300 22,500
$ 168,830 $ 146,000
Income Statement for 2015
Sales Revenue $ 113,000
Cost of Goods Sold 67,500
Other Expenses 32,200
Net Income $ 13,300

Additional Data:
a. Bought equipment for cash, $8,700.
b. Paid $11,000 on the long-term note payable.
c. Issued new shares of stock for $21,500 cash.
d. Declared and paid a $3,500 cash dividend.
e.

Other expenses included depreciation, $7,300; salaries and wages, $11,300; taxes, $4,300; utilities, $9,300.

f.

Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

image

Required: 1. Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students