Statement of Cash Flows

You are provided with the following transactions that took place during a recent fiscal year.

Instructions

Complete the table indicating whether each item (1) affects operating (O) activities, investing (1) activities, Financing (F) activities, or is a non-cash (NC) transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.

The following account balances relate to the stockholders equity accounts of Kerbs Corp. at year-end.

The income statement of Whitlock Company is presented here.

Data for Whitlock Company are presented in P17-3A.

Zumbrunn Company's income statement contained the condensed information below.

Data for Zumbrunn Company are presented in p 17-5A

The following are the financial statements of Nosker Company.

Nosker Company.
Comparative Balance Sheets
December 31
Cheng Inc.
Income Statement
For the Year Ended December 31, 2020
Additional information:
  1. Dividends declared and paid were $20,000.
  2. During the year equipment wassold for $8,500 cash. This equipment coast $18,000 originally and had a book value of $8,500 is in the operating expenses
  3. All depreciation expense $14,500 is in the operating expenses
  4. All sales and purchasers and on account.

Instructions

  1. Prepare a statement of cash flows using the indirect method.
  2. Compute free cash flow

Data for Nosker Company are presented in P 17-7 A. Further analysis reveals the following.

Condensed financial data of Cheng Inc. follow.

Cheng Inc.
Comparative Balance Sheets
December 31
Cheng Inc.
Income Statement
For the Year Ended December 31, 2019
Additional information:
  1. New equipment costing $85,000 was purchased for cash during the year.
  2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.
  3. Bonds matured and were paid off at face value for cash.
  4. A cash dividend of $40,350 was declared and paid during the year.

Instructions

Prepare a statement of cash flows using the indirect method.

Data for cheng In. are presented in.

Cheng Inc.
Comparative Balance Sheets
December 31
Cheng Inc.
Income Statement
For the Year Ended December 31, 2019
Additional information:
  1. New equipment costing $85,000 was purchased for cash during the year.
  2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.
  3. Bonds matured and were paid off at face value for cash.
  4. A cash dividend of $40,350 was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors.

Instructions

Prepare a statement of cash flows for Cheng Inc. using the direct method.

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