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  • Arus Kas Indirect

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    ADRIANO VIERI
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    Depreciation expense was $125,100, equipment costing $244,200 was purchased and $67,200 of fully depreciated equipment was discarded, cash dividends of $230,400 were paid, and 15,000 shares of common stock were issued for $600,000, providing cash flows from financing activities. Net income was $198,000 and cash flows were provided by operating activities of $373,100 through adjusting net income for non-cash expenses like depreciation.

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    Depreciation expense was $125,100, equipment costing $244,200 was purchased and $67,200 of fully depreciated equipment was discarded, cash dividends of $230,400 were paid, and 15,000 shares of common stock were issued for $600,000, providing cash flows from financing activities. Net income was $198,000 and cash flows were provided by operating activities of $373,100 through adjusting net income for non-cash expenses like depreciation.

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    3 views1 page

    Arus Kas Indirect

    Uploaded by

    ADRIANO VIERI
    Depreciation expense was $125,100, equipment costing $244,200 was purchased and $67,200 of fully depreciated equipment was discarded, cash dividends of $230,400 were paid, and 15,000 shares of common stock were issued for $600,000, providing cash flows from financing activities. Net income was $198,000 and cash flows were provided by operating activities of $373,100 through adjusting net income for non-cash expenses like depreciation.

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    of 1

    Statement of cash flows—indirect method

    The comparative balance sheet of Lankau Enterprises Inc. at December 31, 2014 and 2013, is as
    follows:

    Additional data obtained from the income statement and from an examination of the accounts in
    the ledger for 2014 are as follows:

    a. Net income, $198,000.


    b. Depreciation reported on the income statement, $125,100.
    c. Equipment was purchased at a cost of $244,200, and fully depreciated equipment costing
    $67,200 was discarded, with no salvage realized.
    d. The mortgage note payable was not due until 2016, but the terms permitted earlier payment
    without penalty.
    e. 15,000 shares of common stock were issued at $40 for cash.
    f. Cash dividends declared and paid, $230,400.

    Instructions

    Prepare a statement of cash flows, using the indirect method of presenting cash flows from
    operating activities.

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