90.2K

Verified Solution

Link Copied!

Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

	2015				2014
Balance sheet at December 31
Cash	$	64,750			$	63,400
Accounts receivable		15,450				22,650
Merchandise inventory		22,650				18,100
Property and equipment		209,350				150,400
Less: Accumulated depreciation		(59,300	)			(45,850	)
	$	252,900			$	208,700
Accounts payable	$	9,200			$	19,400
Wages payable		2,200				2,800
Note payable, long-term		60,500				71,100
Contributed capital		98,700				66,000
Retained earnings		82,300				49,400
	$	252,900			$	208,700
Income statement for 2015
Sales	$	196,000
Cost of goods sold		93,000
Depreciation expense		13,450
Other expenses		43,100
Net income	$	46,450

Additional Data:
a.	Bought equipment for cash, $58,950.
b.	Paid $10,600 on the long-term note payable.
c.	Issued new shares of stock for $32,700 cash.
d.	Dividends of $13,550 were declared and paid.
e.	Other expenses all relate to wages.
f.	Accounts payable includes only inventory purchases made on credit.

Required:
1.	Prepare the statement of cash flows using the indirect method for the year ended December 31, 2015.(List cash outflows as negative amounts.)

SHARP SCREEN FILMS, INC Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities: Cash Tiows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities Cash flows from investing activities: Cash fiows trom investing activities: Cash flows from financing activities 0 0

Answer & Explanation Solved by verified expert

See Answer