Statement of Cash Flows (Indirect Method) Arctic Companys income statement and comparative balance...
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Statement of Cash Flows Indirect Method Arctic Companys income statement and comparative balance sheets follow. ARCTIC COMPANY Income Statement For Year Ended December Sales $ Cost of goods sold $ Wages expense Advertising expense Depreciation expense Interest expense Gain on sale of land Net loss $ ARCTIC COMPANY Balance Sheet Dec. Dec. Assets Cash $ $ Accounts receivable Inventory Prepaid advertising PPE Accumulated depreciation Total assets $ $ Liabilities and Stockholders' Equity Accounts payable $ $ Interest payable Bonds payable Common stock Retained earnings Treasury stock Total liabilities and equity $ $ During Arctic sold land for $ cash that had originally cost $ Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in Accounts payable relate to merchandise purchases. Required a Compute the change in cash that occurred during Note: Do not use a negative sign with your answer. $Answer Answer b Prepare a statement of cash flows using the indirect method. Arctic Company Statement of Cash Flows For Year Ended December Operating Activities Answer Answer Add Deduct Items to Convert Net Loss to Cash Basis Depreciation Answer Answer Answer Accounts Receivable Decrease Answer Inventory Decrease Answer Prepaid Advertising Decrease Answer Accounts Payable Decrease Answer Interest Payable Increase Answer Answer Answer Investing Activities Answer Answer Purchase of Equipment Answer Answer Answer Financing Activities Issuance of Bonds Payable Answer Answer Answer Answer Answer Net Increase in Cash Answer Cash at Beginning of Year Answer Cash at End of Year Answer
Statement of Cash Flows Indirect Method
Arctic Companys income statement and comparative balance sheets follow.
ARCTIC COMPANY
Income Statement
For Year Ended December
Sales $
Cost of goods sold $
Wages expense
Advertising expense
Depreciation expense
Interest expense
Gain on sale of land
Net loss $
ARCTIC COMPANY
Balance Sheet
Dec. Dec.
Assets
Cash $ $
Accounts receivable
Inventory
Prepaid advertising
PPE
Accumulated depreciation
Total assets $ $
Liabilities and Stockholders' Equity
Accounts payable $ $
Interest payable
Bonds payable
Common stock
Retained earnings
Treasury stock
Total liabilities and equity $ $
During Arctic sold land for $ cash that had originally cost $ Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash in Accounts payable relate to merchandise purchases.
Required
a Compute the change in cash that occurred during
Note: Do not use a negative sign with your answer.
$Answer
Answer
b Prepare a statement of cash flows using the indirect method.
Arctic Company
Statement of Cash Flows
For Year Ended December
Operating Activities
Answer
Answer
Add Deduct Items to Convert Net Loss to Cash Basis
Depreciation Answer
Answer
Answer
Accounts Receivable Decrease Answer
Inventory Decrease Answer
Prepaid Advertising Decrease Answer
Accounts Payable Decrease Answer
Interest Payable Increase Answer
Answer
Answer
Investing Activities
Answer
Answer
Purchase of Equipment Answer
Answer
Answer
Financing Activities
Issuance of Bonds Payable Answer
Answer
Answer
Answer
Answer
Net Increase in Cash Answer
Cash at Beginning of Year Answer
Cash at End of Year Answer
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