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problem 14-40.

refer to the information for Oliver Company above and on the previous page. Prepare a schedule that provides operating flows for the year 20x2 using the Direct method.

Chapter 14 Statement of Cash Flows Oliver Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Land Total assets Liabilities and equity Accounts payable Mortgage payable Stockholders' equity Total liabilities and equity $ 24.600 5.400 8,000 160,000 (18,000) 20,400 $200,400 $ 64,600 9.200 6,000 175,000 (20,000) 47,000 $281,800 $ 8,600 $ 10,000 40,000 231,800 $281,800 191,800 $200,400 OBJECTIVE 2 Exercise 14-39 Operating Cash Flows Refer to the information for Oliver Company above and on the previous page. VITSE Required: 1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows. 2. Prepare a schedule that provides operating cash flows for the year 20X2 using the indirect method. 3. Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 20X2. Given this information and assuming that the operating cash flows for 20X2 are $41,000, calculate the ending balance for accounts receivable. OBJECTIVE 3 Exercise 14-40 Operating Cash Flows Refer to the information for Oliver Company above and on the previous page. Required: Prepare a schedule that provides operating cash flows for the year 20X2 using the direct method. EXCEL Use the following information for Exercises 14-39 and 14-40: Oliver Company provided the following information for the years 20X1 and 20X2: Oliver Company Income Statement For the Year Ended December 31, 20X2 Sales $ 75,000 Cost of goods sold (20,000) Depreciation expense (2,000) Other expenses (13,000) Net income $ 40,000 (Continued)

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