Statement of Cash Flows—Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and...

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Accounting

Statement of Cash Flows—Indirect Method
The comparative balance sheet of Livers Inc. for December 31,20Y3 and 20Y2, is shown as follows:
Dec. 31, 20Y3 Dec. 31, 20Y2
Assets
Cash $256,770 $237,750
Accounts receivable (net) 93,020 85,390
Inventories 262,580 252,830
Investments 0 97,950
Land 134,680 0
Equipment 289,710 223,520
Accumulated depreciation—equipment (67,830) (60,280)
Total assets $968,930 $837,160
Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors) $175,380 $164,920
Accrued expenses payable (operating expenses) 17,440 21,770
Dividends payable 9,690 7,530
Common stock, $10 par 52,320 41,020
Paid-in capital: Excess of issue price overpar-common stock 196,690 113,850
Retained earnings 517,410 488,070
Total liabilities and stockholders’ equity $968,930 $837,160
Additional data obtained from an examination of the accounts inthe ledger for 20Y3 are as follows:
The investments were sold for $114,600 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $68,690 credit to Retained Earnings for netincome.
There was a $39,350 debit to Retained Earnings for cashdividends declared.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash, orany negative adjustments.
LiversInc.
Statement ofCash Flows
For the YearEnded December 31, 20Y3
Cash flows from operating activities:
$
Adjustments to reconcile net income to netcash flow from operating activities:
Changes in current operating assets andliabilities:
Net cash flow from operatingactivities $
Cash flows from investing activities:
$
Net cash flow used for investingactivities
Cash flows from financing activities:
$
Net cash flow from financingactivities
$
Cash at the beginning of the year
Cash at the end of the year $

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3.6 Ratings (313 Votes)

Livers Inc Statement of Cash Flows For the Year Ended December 31 20Y3 A Cash Flows from Operating Activity Net Income 6869000 Adjustments to reconcile net income to net cash flow from operating activities Depreciation expense 755000 Profit on sale of Investment 1665000 Changes in current See Answer

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Transcribed Image Text

Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Livers Inc. for December 31,20Y3 and 20Y2, is shown as follows:Dec. 31, 20Y3Dec. 31, 20Y2AssetsCash$256,770$237,750Accounts receivable (net)93,02085,390Inventories262,580252,830Investments097,950Land134,6800Equipment289,710223,520Accumulated depreciation—equipment(67,830)(60,280)Total assets$968,930$837,160Liabilities and Stockholders'EquityAccounts payable (merchandise creditors)$175,380$164,920Accrued expenses payable (operating expenses)17,44021,770Dividends payable9,6907,530Common stock, $10 par52,32041,020Paid-in capital: Excess of issue price overpar-common stock196,690113,850Retained earnings517,410488,070Total liabilities and stockholders’ equity$968,930$837,160Additional data obtained from an examination of the accounts inthe ledger for 20Y3 are as follows:The investments were sold for $114,600 cash.Equipment and land were acquired for cash.There were no disposals of equipment during the year.The common stock was issued for cash.There was a $68,690 credit to Retained Earnings for netincome.There was a $39,350 debit to Retained Earnings for cashdividends declared.Required:Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash, orany negative adjustments.LiversInc.Statement ofCash FlowsFor the YearEnded December 31, 20Y3Cash flows from operating activities:$Adjustments to reconcile net income to netcash flow from operating activities:Changes in current operating assets andliabilities:Net cash flow from operatingactivities$Cash flows from investing activities:$Net cash flow used for investingactivitiesCash flows from financing activities:$Net cash flow from financingactivities$Cash at the beginning of the yearCash at the end of the year$

		Dec. 31, 20Y3	Dec. 31, 20Y2
Assets
Cash		$256,770	$237,750
Accounts receivable (net)		93,020	85,390
Inventories		262,580	252,830
Investments		0	97,950
Land		134,680	0
Equipment		289,710	223,520
Accumulated depreciation—equipment		(67,830)	(60,280)
	Total assets	$968,930	$837,160

Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors)		$175,380	$164,920
Accrued expenses payable (operating expenses)		17,440	21,770
Dividends payable		9,690	7,530
Common stock, $10 par		52,320	41,020
Paid-in capital: Excess of issue price overpar-common stock		196,690	113,850
Retained earnings		517,410	488,070
	Total liabilities and stockholders’ equity	$968,930	$837,160

LiversInc.
Statement ofCash Flows
For the YearEnded December 31, 20Y3
Cash flows from operating activities:
	$
Adjustments to reconcile net income to netcash flow from operating activities:


Changes in current operating assets andliabilities:




Net cash flow from operatingactivities		$
Cash flows from investing activities:
	$


Net cash flow used for investingactivities
Cash flows from financing activities:
	$

Net cash flow from financingactivities
		$
Cash at the beginning of the year
Cash at the end of the year		$