We at Accounting Assignments Help provide Mcgraw-hill Connect Managerial Accounting Chapter 12 Homework Help with step by step calculation and explanation 24*7 from our professional experts.
Exercise 12-5 Indirect: Cash flows from operating activities
Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017.
| Selected 2017 Income Statement Data | Selected Year-End 2017 Balance Sheet Data | |||
| Net income | $403,000 | Accounts receivable decrease | $128,600 | |
| Depreciation expense | $46,800 | Inventory decrease | $50,500 | |
| Amortization expense | $8,100 | Prepaid expenses increase | $6,300 | |
| Gain on sale of plant assets | $7,500 | Accounts payable decrease | $9,900 | |
| Salaries payable increase | $2,200 | |||
Exercise 12-7 Cash flows from investing activities
- Equipment with a book value of $79,000 and an original cost of $161,000 was sold at a loss of $34,000.
- Paid $103,000 cash for a new truck.
- Sold land costing $320,000 for $410,000 cash, yielding a gain of $90,000.
- Long-term investments in stock were sold for $91,400 cash, yielding a gain of $16,250.
Use the above information to determine this company’s cash flows from investing activities.
Exercise 12-8 Cash flows from financing activities
- Net income was $477,000.
- Issued common stock for $71,000 cash.
- Paid cash dividend of $14,000.
- Paid $120,000 cash to settle a note payable at its $120,000 maturity value.
- Paid $122,000 cash to acquire its treasury stock.
- Purchased equipment for $93,000 cash.
Use the above information to determine this company’s cash flows from financing activities.
Problem 12-3A Indirect: Statement of cash flows
Additional Information on Year 2017 Transactions
- The loss on the cash sale of equipment was $20,125 (details in b).
- Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash.
- Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term note payable for the balance.
- Borrowed $5,500 cash by signing a short-term note payable.
- Paid $57,625 cash to reduce the long-term notes payable.
- Issued 4,000 shares of common stock for $20 cash per share.
- Declared and paid cash dividends of $53,100.
Required:
Prepare a complete statement of cash flows; report its operating activities using the indirect method.