60.1K

Verified Solution

Link Copied!

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Previous Year Current Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment $ 33,720 28,700 27,800 37,800 98,000 (29,600 (24,800) 34,600 40,600 118,000 $197,320 $167,500 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 35,600 1,320 36,200 87,400 36,800 26,800 1,500 42,000 72,400 24,800 $197,320 $167,500 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $118,000 69,000 37,000 Net Income 12,000 Additional Data a. Bought equipment for cash, $20,000 b. Paid $5,800 on the long-term note payable c. Issued new shares of stock for $15,000 cash. d. No dividends were declared or paid e. Other expenses included depreciation, $4,800; Salaries and wages, $19,800; taxes, $5,800; utilities, $6,600 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. Required 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method (Amounts to be deducted should be indicated with a minus sign.)

Answer & Explanation Solved by verified expert

See Answer