The comparative balance sheets for 2013 and 2012 and the statement of income for
ID: 2482694 • 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 $38,000 as a short-term investment not classified as a cash equivalent.
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income with cash flows from operating activities.)(Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
Explanation / Answer
WRIGHT COMPANY
Cash Flow Statement
For the year ended 31st March 2013
($ in 000s)
Particulars Amount ($) Amount($) Cash flow from operating Activities Net Income after tax 90 Add: Depreciation 58 Net Income before depreciation but after Tax 148 Add: Loss on sale of land 3 Add: Increas in CL and decrease in CA Interest payable 3 Accounts Recievable 2 5 Less: Decrease in CL and increase in CA Accounts payable (3) salary payable (2) Income tax payable (6) Inventory (2) (13) Net cash generated from operating Activities (A) 143 Cash flow from investing Activities Sales proceeds form sale of land 25 Purchase of new equipment (190) Net Cash Used in investing activities (B) (165) Cash flows from Financing Activities Note payable paid (38) Reciept from issue of bond 76 Reciept from issue of common stock 92 Dividend (60) Net cash generated from Financing Activities (C) 70 Total cash Generated (A+B+C) 48 Add: Opening cash and cash equivalents (120+24) 144 Closing cash and cash equivalents (130+62) 192