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    Tutorial 14 Introductory Accounting Teaching Assistant Team

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    Aris Kurniawan
    Canary Co. is a furniture company that reported $6,158,000 in net income for 2018 based on its income statement. Key points from the additional information include accounts receivable decreasing by $125,500 while inventory and prepaid expenses increased by $315,000 and $225,750 respectively. The statement asks to prepare a statement of cash flows for Canary Co. for 2018 using the indirect method. PT ABC is presented with condensed financial statements for 2017 and 2018. It reported net income of $172,900 for 2018 based on its income statement. Additional information provided cash flows from purchasing new equipment, selling old equipment, bonds payable maturing and being paid off, and a cash dividend being

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    Tutorial 14 Introductory Accounting Teaching Assistant Team

    Uploaded by

    Aris Kurniawan
    61 views2 pages
    Canary Co. is a furniture company that reported $6,158,000 in net income for 2018 based on its income statement. Key points from the additional information include accounts receivable decreasing by $125,500 while inventory and prepaid expenses increased by $315,000 and $225,750 respectively. The statement asks to prepare a statement of cash flows for Canary Co. for 2018 using the indirect method. PT ABC is presented with condensed financial statements for 2017 and 2018. It reported net income of $172,900 for 2018 based on its income statement. Additional information provided cash flows from purchasing new equipment, selling old equipment, bonds payable maturing and being paid off, and a cash dividend being

    Original Title

    Cash Flows Statement

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    Canary Co. is a furniture company that reported $6,158,000 in net income for 2018 based on its income statement. Key points from the additional information include accounts receivable decreasing by $125,500 while inventory and prepaid expenses increased by $315,000 and $225,750 respectively. The statement asks to prepare a statement of cash flows for Canary Co. for 2018 using the indirect method. PT ABC is presented with condensed financial statements for 2017 and 2018. It reported net income of $172,900 for 2018 based on its income statement. Additional information provided cash flows from purchasing new equipment, selling old equipment, bonds payable maturing and being paid off, and a cash dividend being

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views2 pages

    Tutorial 14 Introductory Accounting Teaching Assistant Team

    Uploaded by

    Aris Kurniawan
    Canary Co. is a furniture company that reported $6,158,000 in net income for 2018 based on its income statement. Key points from the additional information include accounts receivable decreasing by $125,500 while inventory and prepaid expenses increased by $315,000 and $225,750 respectively. The statement asks to prepare a statement of cash flows for Canary Co. for 2018 using the indirect method. PT ABC is presented with condensed financial statements for 2017 and 2018. It reported net income of $172,900 for 2018 based on its income statement. Additional information provided cash flows from purchasing new equipment, selling old equipment, bonds payable maturing and being paid off, and a cash dividend being

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Tutorial 14

    Introductory Accounting
    Teaching Assistant Team

    PROBLEM 1
    Canary Co. is a company that sells furniture. Below is Canary Co.’s income statement for the period
    ended December 31, 2018.

    Canary Co.
    Income Statement
    For the Year Ended December 31, 2018
    Sales Revenue $28,350,000.00
    Cost of Goods Sold
    Beginning Inventory $8,457,000.00
    Purchase 12,985,000.00
    Cost of Goods Available for Sale 21,442,000.00
    Ending Inventory (1,400,000.00)
    Total Cost of Goods Sold (20,042,000.00)
    Gross Profit 8,308,000.00
    Operating Expense (2,150,000.00)
    Net Income 6,158,000.00

    Additional information related to Canary Co. in 2018:


    1. Accounts receivable decreased $125,500 during the year.
    2. Inventory increased $315,000 during the year.
    3. Prepaid expenses increased $225,750 during the year.
    4. Accounts payable decreased $112,560 during the year.
    5. Accrued expenses payable decreased $100,000 during the year.
    6. Operating expenses include depreciation expense of $312,000 during the year.
    Instruction:
    Prepare Statement of Cash Flows for Canary Co. for the period ended December 31, 2018 using
    indirect method!

    PROBLEM 2
    Condensed financial data of PT ABC follow:
    PT ABC
    Statement of Financial Position
    December 31
    (in IDR 000)
    2018 2017
    Assets
    Cash 100,350 48,400
    Accounts receivable 92,800 33,000
    Inventory 112,500 102,850
    Prepaid expenses 29,300 26,000
    Equipment 265,000 242,500
    Accumulated depreciation – equipment (47,000) (52,000)
    Long-term investments 140,000 114,000
    Total 692,950 514,750

    Liabilities and Equity


    Accounts payable 112,000 67,300
    Accrued expense payable 16,500 17,000
    Bonds payable 110,000 150,000
    Share capital – ordinary 220,000 175,000
    Retained earnings 234,450 105,450
    Total 692,950 514,750

    PT ABC
    Income Statement
    For the year ended December 31, 2018
    (in IDR 000)
    Sales revenue 392,780
    Cost of goods sold (135,460)
    Gross profit 257,320

    Operating expense, excluding depreciation (12,410)


    Depreciation expense (45,000)
    Interest expense (4,730)
    Gain on disposal of plant assets 5,000
    Income tax expense (27,280)
    Net income 172,900

    Additional information:
    1. New equipment costing 80,000 was purchased for cash during the year.
    2. Old equipment having an original cost of 57,500 and accumulated depreciation of 50,000 was
    sold for 12,500 cash.
    3. Bonds payable matured and were paid off at face value for cash.
    4. A cash dividend of 43,900 was declared and paid during the year.

    Instruction:
    Prepare a statement of cash flows using the indirect method

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