Statement of Cash FlowsThe following is a list of items for Witts Company's 2016 statement of cash flows:a. receipt from sale of equipment, $2,700b. increase in inventory, $3,900c. net income, $13,500d. payment for purchase of building, $29,000e. depreciation expense, $8,700f. receipt from issuance of bonds, $8,000g. increase in prepaid expenses, $800h. loss on sale of equipment, $2,200i. payment of dividends, $5,200j. decrease in accounts receivable, $1,700k. issuance of common stock for land, $6,900I. decrease in accounts payable, $1,500m. beginning cash balance, $10,200Required:1. Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.WITTS COMPANYStatement of Cash FlowsFor Year Ended December 31, 2016Operating Activities:Adjustment for noncash income items:Adjustments for cash flow effectsfrom working capital items:Investing Activities: Investing Activities:Financing Activities:Cash, January 1, 2016Cash, December 31, 20162. If Witts Company uses IFRS, and chooses to show dividends as an operating activity, which of the following will result?a. Witts Company would report net cash provided by operating activities of $25,100.b. Witts Company would report net cash provided by operating activities of $14,700.c. Witts Company would report net cash provided by financing activities of $2,800.d. Witts Company would report net cash used by financing activities of $2,400.

The cash flow statement is prepared to estimate the net cash inflow or outflow from the business…

Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: a. receipt from sale of equipment, $2,700 b. increase in inventory, $3,900 c. net income, $13,500 d. payment for purchase of building, $29,000 e. depreciation expense, $8,700 f. receipt from issuance of bonds, $8,000 g. increase in prepaid expenses, $800 h. loss on sale of equipment, $2,200 i. payment of dividends, $5,200 j. decrease in accounts receivable, $1,700 k. issuance of common stock for land, $6,900 I. decrease in accounts payable, $1,500 m. beginning cash balance, $10,200 Required:

Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: a. receipt from sale of equipment, $2,700 b. increase in inventory, $3,900 c. net income, $13,500 d. payment for purchase of building, $29,000 e. depreciation expense, $8,700 f. receipt from issuance of bonds, $8,000 g. increase in prepaid expenses, $800 h. loss on sale of equipment, $2,200 i. payment of dividends, $5,200 j. decrease in accounts receivable, $1,700 k. issuance of common stock for land, $6,900 I. decrease in accounts payable, $1,500 m. beginning cash balance, $10,200 Required:

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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Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
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