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Accounting Question on making a Cash Flow Statement?
I am having troubles with this question and was wondering if I could get some help! I would appreciate it!
Here is the question:
Below is a Balance Sheet for AlCan, Inc. for years ended 2005 and 2006. I would like you to prepare a Cash Flow Statement using the Indirect Method and the following information. There were no dividends paid in 2005 and 2006.
AlCan, Inc.
Balance Sheet
Years Ended
Dec-05
Dec-06
Assets
Cash
15,000
35,000
Accounts Receivable
22,500
26,000
Inventory
37,500
40,000
Prepaid Expenses
18,000
12,000
Plant and Equipment
375,000
375,000
Less: Accumulated Depreciation
(75,000)
(90,000)
Total Assets
393,000
398,000
Liabilities
Accounts Payable
20,000
22,000
Notes payable
30,000
28,000
Bonds Payable
75,000
50,000
Total Liabilities
125,000
100,000
Stockholders' Equity
Common Stock
112,500
135,000
Paid-in Capital
37,500
40,000
Retained Earnings
118,000
123,000
Total Stockholders' Equity
268,000
298,000
Total Liabilities and Stockholders' Equity
393,000
398,000
This was someone else posted. I copied the question word for word so there is no income statement
Cash Flow - Operating Income
Net Income $5,000
Adjustments to reconcile net income
to net cash provided by operating activities:
Inventory - Increase ($2,500)
Prepaid Expenses - Increase $6,000
Accounts Payable - Increase $2,000 $17,000
Accounts Receivables - Decrease ($3,500)
Depreciation $15,000
Net Cash from Operating Expenses $22,000
Cas
2 Answers
- SandyLv 77 years agoFavorite Answer
You forgot to give us the income statement, or at least the net income and additional information. You need to check the question.
- Anonymous5 years ago
Come on this one is easy. Which one doesn't say purchase or payment?
