financial accounting 437574

Aug 29, 2021 | Uncategorized

Wickersham Brothers Inc. is developing its annual financial statements at December 31, 2011. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.

2011 2010
Balance Sheet
Cash 50,000 72,000
Accounts receivable 80,000 70,000
Merchandise inventory 60,000 65,000
Property and equipment 110,000 60,000
Less: Accumulated depreciation (30,000 ) (15,000 )
270,000 252,000
Accounts payable $ 10,000 $ 12,000
Wages payable 2,000 1,000
Notes payable, long term 50,000 60,000
Contributed capital 100,000 80,000
Retained earnings 108,000 99,000
$ 270,000 $

252,000

Income Statement
Sales $ 200,000
Cost of good sold 110,000
Depreciation expense 15,000
Other expenses 50,000
Net income $ 25,000
Additional Data:
a. Bought equipment for cash, $50,000.
b. Paid $10,000 on long term note payable.
c. Issued new shares of stock for $20,000 cash.
d. Cash dividends of $16,000 were declared and paid.
e. Accounts payable are exclusively related to inventory purchases on credit.
f.

Tax expense ($4,000) and interest expense ($3,000) were paid in full at the end of both years and are included in other expenses.

(a)

Prepare the statement of cash flows for 2011 using the indirect method. (Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)

Wickersham Brothers Inc.
Statement of cash flows
For the year ended December 31, 2011
Cash flows from operating activities
(Click to select) Net loss Net income $
Adjustments
(Click to select) Change in accounts payable Change in accounts receivable Change in wages payable Change in inventories Change in prepaid expense Depreciation Change in salaries payable
(Click to select) Depreciation Change in accounts receivable Change in inventories Change in prepaid expense Change in accounts payable Change in wages payable Change in salaries payable
(Click to select) Change in salaries payable Change in accounts receivable Change in wages payable Depreciation Change in inventories Change in accounts payable Change in prepaid expense
(Click to select) Change in accounts payable Change in inventories Change in accounts receivable Change in prepaid expense Change in salaries payable Depreciation Change in wages payable
(Click to select) Change in inventories Change in salaries payable Depreciation Change in wages payable Change in prepaid expense Change in accounts receivable Change in accounts payable
Net cash provided by (used in) operating activities $
Cash flows from investing activities
(Click to select) Change in accounts receivable Change in wages payable Proceeds from issuance of stock Additions to property, plant, and equipment Change in inventories Repaid principal on long term debt Change in accounts payable
Net cash provided by (used in) investing activities
Cash flows from financing activities
(Click to select) Repaid principal on long term debt Repaid principal on short term debt Cash collected from customers Cash paid for dividends Proceeds from issuance of stock Cash paid for expenses Cash paid for interest
(Click to select) Cash collected from customers Repaid principal on long term debt Cash paid for expenses Proceeds from issuance of stock Cash paid for dividends Repaid principal on short term debt Cash paid for interest
(Click to select) Cash paid for expenses Cash paid for dividends Repaid principal on short term debt Cash collected from customers Cash paid for interest Proceeds from issuance of stock Repaid principal on long term debt
Net cash provided by (used in) financing activities
(Click to select) Change in account receivable Change in inventory Increase in cash and cash equivalents Decrease in cash and cash equivalents Change in wages payable Change in account payable Cash paid for dividends
(Click to select) Cash and cash equivalents, January 1 Change in accounts receivable Cash and cash equivalents, December 31 Repaid principal on long term debt Change in wages payable Change in inventories Change in accounts payable
(Click to select) Change in wages payable Change in inventories Change in accounts receivable Repaid principal on long term debt Cash and cash equivalents, December 31 Change in accounts payable Cash and cash equivalents, January 1