The comparative balance sheets for 2013 and 2012 and the statement of income for
ID: 2461872 • Letter: T
Question
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
The common stock of Microsoft Corporation was purchased for $38,000 as a short-term investment not classified as a cash equivalent.
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2013. Present cash flows for operating, investing and financing by the INDIRECT METHOD. (You may omit the schedule to reconcile net income with cash flows from operating activities.)(Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Opening cash and cash equivalents 120,000.00 Income 90,000.00 Loss on Sale of Land 3,000.00 Income Tax Expense 95,000.00 Depreciation 58,000.00 Decrease in AR 2,000.00 Increase in STI (38,000.00) Increase in inventory (2,000.00) Decrease in AP (3,000.00) Decrease in Salaries Payable (2,000.00) Increase in Intt Payable 3,000.00 Income Tax paid = 15000 + 95000 -9000 (101,000.00) Cash flow from operating activities 105,000.00 Cash flow from Investing activities Sale of Land 25,000.00 Purchase of Building (190,000.00) Cash flow from Investing activities (165,000.00) Cash flow from Financing activities Issue of Stock 65,000.00 Issue of Paid in Capital- Excess of Par 27,000.00 Dividend Paid = 67000 + 90000 -97000 (60,000.00) Notes Paid (38,000.00) Issue of Bonds 76,000.00 Cash flow from Financing activities 70,000.00 Closing cash and cash equivalents 130,000.00