Exercise 13-4 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 23 D Liabilities and Stockholders' Equity Accounts Accounts payable $ 71 I $ 27 I Accrued liabilities $ 27 D $ 64 D Income taxes payable $ 32 I $ 22 I Bonds payable $ 228 I $ 24 D Common stock $ 108 D $ 440 I Retained earnings $ 91 I $ 91 I D= Decrease; I = Increase. Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In addition, the company declared and paid $21 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $ 1,110 488 622 450 172 $ (24) 28 176 64 $ 112 Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $134 and its ending balance was $111. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year. Complete this question by entering your answers in the tabs below.
Exercise 13-4 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 23 D Liabilities and Stockholders' Equity Accounts Accounts payable $ 71 I $ 27 I Accrued liabilities $ 27 D $ 64 D Income taxes payable $ 32 I $ 22 I Bonds payable $ 228 I $ 24 D Common stock $ 108 D $ 440 I Retained earnings $ 91 I $ 91 I D= Decrease; I = Increase. Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In addition, the company declared and paid $21 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $ 1,110 488 622 450 172 $ (24) 28 176 64 $ 112 Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $134 and its ending balance was $111. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year. Complete this question by entering your answers in the tabs below.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income,...
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![Exercise 13-4 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
The following changes took place last year in Pavolik Company's balance sheet accounts:
Asset and Contra-Asset Accounts
Cash
Accounts receivable
Inventory
Prepaid expenses
Long-term investments
Property, plant, and equipment
Accumulated depreciation
$ 23 D
Liabilities and Stockholders' Equity Accounts
Accounts payable
$ 71 I
$ 27 I
Accrued liabilities
$ 27 D
$ 64 D
Income taxes payable
$ 32 I
$ 22 I
Bonds payable
$ 228 I
$ 24 D
Common stock
$ 108 D
$ 440 I
Retained earnings
$ 91 I
$ 91 I
D= Decrease; I = Increase.
Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In
addition, the company declared and paid $21 in cash dividends during the year. Besides the sale of land, no other sales or retirements
of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company's income statement for the year follows:
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Nonoperating items:
Loss on sale of land
$ 1,110
488
622
450
172
$ (24)
28
176
64
$ 112
Gain on sale of investments
Income before taxes
Income taxes
Net income
The company's beginning cash balance was $134 and its ending balance was $111.
Required:
1. Use the indirect method to determine the net cash provided by operating activities for the year.
2. Prepare a statement of cash flows for the year.
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0e696d4-1b25-491a-9c40-9ab97341523b%2F0fe50b21-3e7b-4634-831c-70a2c26240d8%2F1nnq4c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-4 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
The following changes took place last year in Pavolik Company's balance sheet accounts:
Asset and Contra-Asset Accounts
Cash
Accounts receivable
Inventory
Prepaid expenses
Long-term investments
Property, plant, and equipment
Accumulated depreciation
$ 23 D
Liabilities and Stockholders' Equity Accounts
Accounts payable
$ 71 I
$ 27 I
Accrued liabilities
$ 27 D
$ 64 D
Income taxes payable
$ 32 I
$ 22 I
Bonds payable
$ 228 I
$ 24 D
Common stock
$ 108 D
$ 440 I
Retained earnings
$ 91 I
$ 91 I
D= Decrease; I = Increase.
Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In
addition, the company declared and paid $21 in cash dividends during the year. Besides the sale of land, no other sales or retirements
of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company's income statement for the year follows:
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Nonoperating items:
Loss on sale of land
$ 1,110
488
622
450
172
$ (24)
28
176
64
$ 112
Gain on sale of investments
Income before taxes
Income taxes
Net income
The company's beginning cash balance was $134 and its ending balance was $111.
Required:
1. Use the indirect method to determine the net cash provided by operating activities for the year.
2. Prepare a statement of cash flows for the year.
Complete this question by entering your answers in the tabs below.
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