Cash flow statement, Cost Accounting

Portions of the financial statements for Hawkeye Company are provided below.
Income Statement
For the Year Ended December 31, 2013
Sales $ 850
Cost of goods sold (325 )
Gross margin 525
Salaries expense $ 227
Depreciation expense 185
Interest expense 35
Gain on sale of cash equivalents (4 ) (443 )
Income before taxes and extraordinary loss 82
Income tax expense (41 )
Income before extraordinary loss 41
Extraordinary loss (flood damage to inventory) 12
Less: Tax savings (6 ) (6 )
Net Income $ 35
Selected Accounts from Comparative Balance Sheets
2013 and 2012
2013 2012 Change
Cash $242 $215 $27
Accounts receivable 390 411 (21)
Inventory 890 865 25
Accounts payable 225 264 (39)
Salaries payable 185 198 (13)
Interest payable 65 55 10
Income taxes payable 95 114 (19)
1.Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
2.Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method
Cash Flows from Operating Activities:
Cash received from customers $ ______________
Gain on sale of cash equivalents $¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬___________________
Cash paid to suppliers $________________________
Cash paid for interest $_______________________
Cash paid from income $______________________
NET cash flow from operating activities $_________________
Indirect Method
Cash Flows from Operating Activities:
Net income $ _____________________
Adjustments for non cash effects:
Depreciation expense $ ___________
Extraordinary loss/gain $__________
Changes in operating assets and liabilities:
Decrease in accounts receivable $__________
Increase in inventory$__________
Decrease in accounts payable $__________
Decrease in salaries payable $__________
Increase in Interest payable $____________________
Decrease in income taxes payable $_____________________
Net cash flow from operating activities $________________

Posted Date: 2/25/2014 5:13:58 AM | Location : United States

Related Discussions:- Cash flow statement, Assignment Help, Ask Question on Cash flow statement, Get Answer, Expert's Help, Cash flow statement Discussions

Write discussion on Cash flow statement
Your posts are moderated
Related Questions
A company provides several different services to its customers from a single office. Fixed costs of the office, including staff costs, are absorbed into the company's service costs

Mathematical Derivation of EOQ Let cost per order is represented via Co. it is the cost incurred every instance one order is placed. Let the economic quantity purchase ever

Compute Over and Under Absorption of Variable and Fixed Overhead A company has a machine cost center for that the given information is available as a) Budget i. Budget

These should be distinguished from estimated liabilities. Estimated liabilities are identified liabilities where the amount is uncertain. Contingent liabilities conversely are not

A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular it

What are 'potential' ordinary shares?  In your answer provide three examples to support your explanation.  Briefly outline the process (steps) to determine whether 'potential' ordi

what is the meaning of classification of cost in relation to variability?

A normal job-order costing system is a system that uses :    A.  actual costs for direct materials and estimated costs for direct labor and overhead B.  estimated costs

Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t

Assignment of Variance in Variance Calculation In variances calculating, the calculations require to be detailed sufficient hence the responsibility for the variance can be a