Statement of Cash Flows, Indirect Method
Booth Manufacturing has provided the following financialstatements.
Other information includes: (a) Equipment with a book value of$125,000 was sold for $175,000 (original cost was $225,000); and(b) Dividends of $225,000 were declared and paid.
Required:
Hide
1. Calculate the cash flows from operationsusing the indirect method.
2. Prepare a statement of cash flows. Use aminus sign to indicate any decreases in cash or cash outflows.
Booth Manufacturing
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
$
Add (deduct) adjusting items:
Net cash from operating activities
$
Cash flows from investing activities:
$
Net cash from investing activities
Cash flows from financing activities:
$
Net cash from financing activities
Net increase in cash
$
http://sjc.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?takeAssignmentSessionLocator=assignment-take
Booth Manufacturing Comparative Balance Sheets At December 31, 2013 and 2014 2013 2014 Assets Cash 112,500 350,000 Accounts receivable 281,250 350,000 Inventories 125,000 150,000 1,000,000 Plant and equipment 1,025,000 Accumulated depreciation (500,000) (525,000) 718,750 Land 500,000 Total assets $1,587,500 $2,000,000 Liabilities and equity Accounts payable 300,000 237,500 250,000 75,000 75,000 Mortgage payable Common stock Paid-in capital in excess of par 300,000 300,000 1,137,500 Retained earnings 912,500 Total liabilities and equity $2,000,000 $1,587,500 Booth Manufacturing Income Statement For the Year Ended December 31, 2014 $1,200,000 Revenues Gain on sale of equipment 50,000 (640,000) Less: Cost of goods sold (125,000) Less: Depreciation expense Less: Interest expense (35,000) Net income 450,000 Show transcribed image text Booth Manufacturing Comparative Balance Sheets At December 31, 2013 and 2014 2013 2014 Assets Cash 112,500 350,000 Accounts receivable 281,250 350,000 Inventories 125,000 150,000 1,000,000 Plant and equipment 1,025,000 Accumulated depreciation (500,000) (525,000) 718,750 Land 500,000 Total assets $1,587,500 $2,000,000 Liabilities and equity Accounts payable 300,000 237,500 250,000 75,000 75,000 Mortgage payable Common stock Paid-in capital in excess of par 300,000 300,000 1,137,500 Retained earnings 912,500 Total liabilities and equity $2,000,000 $1,587,500 Booth Manufacturing Income Statement For the Year Ended December 31, 2014 $1,200,000 Revenues Gain on sale of equipment 50,000 (640,000) Less: Cost of goods sold (125,000) Less: Depreciation expense Less: Interest expense (35,000) Net income 450,000
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
