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AC116 Unit 9 Lab Assignment
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Concord, Inc. reported net income of $2.80 million in 2022. Depreciation for the year was $179,200, accounts receivable decreased $392,000, and accounts payable decreased $313,600.
Compute net cash provided by operating activities using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Concord, Inc.
Statement of Cash Flows-Indirect Approach
December 31, 2022
$
Net Income
Adjustments to reconcile net income to
$
– Cash at beginning of period
– Cash at end of period
– Cash flows from financing activities
– Cash flows from investing activities
– Cash flows from operating activities
– Net cash provided by financing activities
– Net cash provided by investing activities
– Net cash provided by operating activities
– Net cash used by financing activities
– Net cash used by investing activities
– Net cash used by operating activities
– Net decrease in cash
– Net increase in cash
$
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AC116 Unit 9 Lab Assignment
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The following account balances relate to the stockholders’ equity accounts of Vaughn Corp. at year-end.
2022
2021
Common stock, 10,500 and 10,000 shares, issued and
$162,600
$138,200
Preferred stock, 5,000 shares, issued and outstanding
outstanding, respectively, for 2022 and 2021
147,900
147,900
Retained earnings
301,300
253,300
A small stock dividend was declared and issued in 2022. The market price of the shares issued was $11,500. Cash dividends of $16,900 were declared and paid in both 2022 and 2021. The common
stock and preferred stock have no par or stated value.
(a)
What was the amount of net income reported by Vaughn Corp. in 2022?
Net income
$
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(b)
Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022.
Common stock
$
Dividends
$
– Inflow
– Outflow
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(c)
Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows.
Common stock
Dividends
– Investing
– operating
– Financing
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AC116 Unit 9 Lab Assignment
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Current Attempt in Progress
Presented here are the financial statements of Sheffield Company.
SHEFFIELD COMPANY
Comparative Balance Sheets
December 31
Assets
2022
2021
Cash
$37,600
$20,700
Accounts receivable
32,200
18,000
Inventory
29,800
20,200
Property, plant, and equipment
59,800
77,100
Accumulated depreciation
Total
(29,600)
(23,200)
$129,800
$112,800
$28,700
$ 16,900
Liabilities and Stockholders’ Equity
Accounts payable
Income taxes payable
7,500
8,000
Bonds payable
26,200
33,200
Common stock
19,000
13,200
Retained earnings
48,400
41,500
$129,800
$112,800
Total
SHEFFIELD COMPANY
Income Statement
For the Year Ended December 31, 2022
Sales revenue
$242,800
Cost of goods sold
176,500
Gross profit
Selling expenses
Administrative expenses
66,300
$17,925
5,975
Income from operations
23,900
42,400
Interest expense
3,900
Income before income taxes
38,500
Income tax expense
Net income
7,700
$30,800
Additional data:
1.
Depreciation expense was $16,100.
2.
Dividends declared and paid were $23,900.
3.
During the year, equipment was sold for $7,600 cash. This equipment originally cost $17,300 and had accumulated depreciation of $9,700 at the time of sale.
4.
Bonds were redeemed at their carrying value.
AC116
Unit 9 Lab Assignment
5.
Common stock was issued at par for cash.
Question 9 of 9
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(a)
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash ow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
SHEFFIELD COMPANY
Statement of Cash Flows
Sam as previos question
$
Adjustments to reconcile net income to
$
For second line
– Sale of equipment
– For operating expenses
– Increase in accounts payable
– For income taxes
– Decrease in accounts receivable
– Redemption of bonds
– Decrease in accounts payable
– Purchase of equipment
– Decrease in inventory
– Issuance of bonds
– Depreciation expense
– Increase in income tax payable
– Issuance of common stock
– Redemption of common stock
– For interest
– Sale of bonds
– Decrease in income tax payable
– Net income
– Increase in inventory
– To suppliers
– Payment of dividends
$
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AC116 Unit 9 Lab Assignment
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(b)
Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Free Cash Flow
$
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