Could you please help me solve the accounting below? Please see the attached fil
ID: 2561055 • Letter: C
Question
Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and solutions. Thank you very much!
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:
Additional Data:
Bought equipment for cash, $60,950.
Paid $12,200 on the long-term note payable.
Issued new shares of stock for $36,400 cash.
Dividends of $10,450 were declared and paid.
Other expenses all relate to wages.
Accounts payable includes only inventory purchases made on credit.
Required:
1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. (List cash outflows as negative amounts.)
Current Year Prior Year Balance sheet at December 31 Cash $ 70,850 $ 66,200 Accounts receivable 19,750 25,950 Merchandise inventory 25,950 20,800 Property and equipment 214,150 153,200 Less: Accumulated depreciation (63,400 ) (47,950 ) $ 267,300 $ 218,200 Accounts payable $ 13,500 $ 23,800 Wages payable 7,400 4,500 Note payable, long-term 64,000 76,200 Contributed capital 104,200 67,800 Retained earnings 78,200 45,900 $ 267,300 $ 218,200 Income statement for current year Sales $ 213,000 Cost of goods sold 110,000 Depreciation expense 15,450 Other expenses 44,800 Net income $ 42,750 SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 0Explanation / Answer
cash received from customers sales 213,000 add decrease in accounts receivable 6200 cash received from customers 219,200 Cash paid to suppliers cost of goods sold 110,000 add:decrease in accounts payable 10,300 Add:increase in inventory 5,150 Cash paid to suppliers 125,450 Cash paid for other expenses other expenses 44,800 less increase in wages payable 2,900 Cash paid for other expenses 41,900 Statement of cash flow cash from operating activities Cash received from customers 219,200 less : cash paid to suppliers -125,450 cash paid for other expenses -41,900 cash from operating activities 51,850 51,850 Cash from investing activities cash paid for purchase of Equipment -60,950 Cash from investing activities -60,950 Cash from financing activities Cash paid for long term note payable -12,200 cash from issue of new shares 36,400 Cash dividend paid -10,450 Cash from financing activities 13,750 Net increase in cash 4,650 cash at the beginning of the year 66,200 cash at year end 70,850