Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................................ $ 44 Accounts receivable ......................................... 82 69 Inventory .......................................................... 71 69 Plant and equipment ....................................... Accumulated depreciation............................... () Total assets....................................................... 4 5 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable...........................................

24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings......................................

Total liabilities and stockholders’ equity .. 4 5 The net income for the year was 8. Cash dividends were . Question: Prepare a statement of cash flows in good form using the indirect method. Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................. ........ ...... . $ 44 $ 38 Accounts receivable .................................. ...... . Inventory ................................................... ..... . .

Plant and equipment .................................. .... . Accumulated depreciation..................... .... ..... . ( ) Total assets................................................ ...... . 4 5 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable........................................... Taxes payable ............................................ Bonds payable ........................................... Deferred taxes............................................

Common stock........................................... Retained earnings...................................... Total liabilities and stockholders’ equity .. 4 5 The net income for the year was 8. Cash dividends were . Question : Prepare a statement of cash flows in good form using the indi rect method.

Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................................ $ 44 Accounts receivable ......................................... 82 69 Inventory .......................................................... 71 69 Plant and equipment ....................................... Accumulated depreciation............................... () Total assets....................................................... 4 5 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable...........................................

24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings......................................

114 34 Total liabilities and stockholders’ equity .. 4 5 The net income for the year was 8. Cash dividends were . Question: Prepare a statement of cash flows in good form using the indirect method.

Paper for above instructions

Statement of Cash Flows - Boscia Corporation (Indirect Method)

Boscia Corporation
Statement of Cash Flows
For the Year Ended October 31, 2023
Cash Flows from Operating Activities
Net Income: 8
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
+ Increase in Accounts Receivable: $(82 - 69) $ (13)
+ Increase in Inventory: $(71 - 69) $ (2)
+ Increase in Accounts Payable: $(70 - 60) $ 10
+ Increase in Wages Payable: $(24 - 21) $ 3
+ Decrease in Taxes Payable: $(19 - 22) $ (3)
+ Increase in Deferred Tax Liabilities: $(19 - 18) $ 1
Net Cash Flows from Operating Activities:
\[
\text{Net Cash from Operating Activities} = 108 - 13 - 2 + 10 + 3 - 3 + 1 = 104
\]
Cash Flows from Investing Activities
(There are no investments or sales of fixed assets reported in the balance sheet.)
Cash Flows from Financing Activities
- Cash Dividend Paid: $(28)
Net Cash Flows from Financing Activities:
\[
\text{Net Cash from Financing Activities} = -28
\]
Net Increase in Cash:
\[
\text{Net Increase in Cash} = 104 - 28 = 76
\]
Cash at Beginning of Year:
Cash at End of Year:
Reconciliation of Cash
\[
\text{Ending Cash Balance} = \text{Beginning Cash Balance} + \text{Net Increase in Cash}
\]
\[
44 = 38 + 76
\]

Analysis

The Statement of Cash Flows constructed for Boscia Corporation illustrates how cash is generated and used during the given period. The cash flows are categorized into three primary segments: Operating Activities, Investing Activities, and Financing Activities.
Operating Activities
Using the indirect method, the cash flows from operations began with the net income. Adjustments were made for changes in working capital accounts such as accounts receivable, payable, inventory, wages, and taxes. The increase in accounts receivable of (representing cash that has not yet been collected) decreased the cash provided by . Similarly, the increase in inventory decreased cash by

Part E Preparing Statement Of Cash Flowsboscia Corporations Balance

Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................................ $ 44 $38 Accounts receivable ......................................... 82 69 Inventory .......................................................... 71 69 Plant and equipment ....................................... Accumulated depreciation............................... () Total assets....................................................... $494 $475 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable...........................................

24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings......................................

Total liabilities and stockholders’ equity .. $494 $475 The net income for the year was $108. Cash dividends were $28. Question: Prepare a statement of cash flows in good form using the indirect method. Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................. ........ ...... . $ 44 $ 38 Accounts receivable .................................. ...... . Inventory ................................................... ..... . .

Plant and equipment .................................. .... . Accumulated depreciation..................... .... ..... . ( ) Total assets................................................ ...... . $49 4 $475 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable........................................... Taxes payable ............................................ Bonds payable ........................................... Deferred taxes............................................

Common stock........................................... Retained earnings...................................... Total liabilities and stockholders’ equity .. $494 $475 The net income for the year was $108. Cash dividends were $28. Question : Prepare a statement of cash flows in good form using the indi rect method.

Part E: Preparing Statement of Cash Flows Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents................................ $ 44 $38 Accounts receivable ......................................... 82 69 Inventory .......................................................... 71 69 Plant and equipment ....................................... Accumulated depreciation............................... () Total assets....................................................... $494 $475 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable...........................................

24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings......................................

114 34 Total liabilities and stockholders’ equity .. $494 $475 The net income for the year was $108. Cash dividends were $28. Question: Prepare a statement of cash flows in good form using the indirect method.

.
In contrast, increases in accounts payable () and wages payable (