635 84A For the yearled 1M 2014 e oe ake Copetn was expense

635 84A, For the year-led 1-M, 2014 e oe ake Copetn was expense w increased ty 58,800, Inventories increased $4,000 During the year, $14,000 d Rt decreased by $2,800, Accunts Pyepaid Rent lows er ecreased000, decreased ho,Salares Payabble increased bby $2,000, and Income flows from o erating activities. method to prepare a schedule of cash o Computing Cash Flows from Investing Activities the ESA. Wilma Company\'s T end of 2014 follows account for long-term available-for-sale investments at Dr. Cr. Beg. Bal. 78,000 76,000 Sales of Investments 116,000 Purchases of Investments End. Bal. 114,000 In addition, Wilma\'s income state $13,000. Co ment shows a loss on the sale of investment mpute the amounts to be shown as cash flows from investing activities show how they appear in the statement of cash lows. Compu ting Cash Flows from Investing Activities: Plant Assets E6A. Th at the end of 2014 follow. e T accounts for plant assets and accumulated depreciation for Street C Accumulated Depreciation Cr. Plant Assets Dr. Cr. Dr. 130,000|Disposals Disposals 29,400)Beg Bal. Beg. Bal. urchases 67,200 nd. Bal. 151,200 46,000 Depreciatio End. Bal. ddition, Street\'s income statement shows a gain on sale of plant asse they appear on the statement of cash flows. pute the amounts to be shown as cash flows from investing activi rmining Cash Flows from Financing Activities: Notes Paya ll transactions involving Notes Payable and related accounts 2014 follow. Dr.

Solution

Answer LO2. Statement of Cash Flows (Partial) (Indirect Method) Cash Flow from opearating activities: Net Income        14,800.00 Add/(Less) non cash effects on operating activities Depreciation expense          4,000.00 Increase in Accounts Receivables        (8,800.00) Increase in Inventory     (14,000.00) Decrease in Prepaid Rent          2,800.00 Increase in Accounts Payables        28,000.00 Increase in Salaries Payable          2,000.00 Decrease in Income Tax Payable        (1,200.00)        12,800.00 Net Cash provided by operating activities        27,600.00 Answer LO3. Statement of Cash Flows (Partial) (Indirect Method) Cash flow from Investing Activities Purchase of Investments (116,000.00) Sale of Investments        65,000.00 Net Cash Flow provided (used) from Investing activities     (51,000.00) Investments Particulars Amt Particulars Amt To Balance B/f      76,000.00 By Cash (Bal. fig.)      65,000.00 To Cash    116,000.00 By Loss on sale of investments      13,000.00 By Balance C/f    114,000.00    192,000.00    192,000.00