Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012:?

Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012:

December 31,

2012 2011

Current Accounts:

Current assets:

Cash and cash equivalents $ 92,100 $ 17,000

Accounts receivable 64,500 69,200

Inventories 87,000 80,000

Current liabilities:

Accounts payable 57,900 56,200

Income tax payable 14,400 17,100

Transaction Data for 2012:

Issuance of common stock for cash $ 40,000

Depreciation expense 25,000

Purchase of equipment 75,000

Acquisition of land by issuing long-term note payable 122,000

Cost basis of building sold 53,000

Payment of note payable $48,100

Payment of cash dividends 54,000

Issuance of note payable to borrow cash 67,000

Gain on sale of building 5,500

Net income 70,500

1. Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.

2 Answers

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  • JKRB
    Lv 7
    8 years ago
    Best Answer

    Use this template for calculating indirect cash flow

    INDIRECT METHOD FOR CASH FLOWS

    CASH FLOW FROM OPERATING ACTIVITIES:

    Net Income

    + Depreciation, Amortization or Depletion

    + Non-operating Losses

    - Non-operating Gains

    + any increases in Current Liabilities

    + any decreases in Current Assets

    - any decreases in Current Liabilities

    - any increases in Current Assets

    = Cash Flow from Operating Activities

    CASH FLOW FROM INVESTING ACTIVITIES:

    + sell Long-term assets for cash

    - buy (construct) Long-term assets for cash

    = Cash Flow from Investing Activities

    CASH FLOW FROM FINANCING ACTIVITIES:

    + Stock issued for cash

    + Cash borrowed with loans and bonds

    - Treasury stock repurchased for cash

    - Cash used to repay loans and bonds

    - Cash dividends paid

    =Cash Flow from Financing Activities

    Total Cash Flow (Operating, Investing, Financing)

    + Beginning Cash

    = Ending Cash

  • 3 years ago

    1

    Source(s): End Times Prediction http://givitry.info/EndTimesProphecy/?n31o
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