IMPORTANT: Pls help asap ! Thank u in advance will give you thumbs up :) XS Supp
ID: 2500897 • Letter: I
Question
IMPORTANT: Pls help asap! Thank u in advance will give you thumbs up :)
XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Year Previous Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment 34,400 40.400 116,500 33,580 28,550 27,700 37,700 97,000 (29,400) (24,700) $195,480 $166,250 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 35,400 S 26,700 1,550 41,000 72,300 24,700 1,380 35,300 86.800 36,600 $195,480 $166,250 Income Statement Sales Revenue Cost of Goods Sold Other Expenses 117,000 68.500 36.600 Net Income $11,900 Additional Data a. Bought equipment for cash, $19,500 b. Paid $5,700 on the long-term note payable c. Issued new shares of stock for $14,500 cash. d. No dividends were declared or paid e. Other expenses included depreciation, $4,700; Salaies and wages, $19,700; taxes, $5,700; utilities $6,500 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.Explanation / Answer
Statement of Cash Flows:
$ Cash flow from Operating Activities: Net Income 11900 + Depreciation 4700 16600 - Increase n Accounts Receivable -6700 - Increase in Inventory -2700 + Increase in account payable 8700 - Decrease in Salaries and wages payable -170 Cash flow from Operating Activities A 15730 Cash flow from investing activites: Purchase of Equipment -19500 Cash flow from investing activities B -19500 Cash flow from financing activities: Payment of notes payable -5700 Issue of shares 14500 Cash flow from financing activities C 8800 Net Increae / Decrease in Cash A+B+C 5030 + Opening Cash Balance 28550 Closing Cash Balance 33580