Cash flow statement, Cost Accounting

Portions of the financial statements for Hawkeye Company are provided below.
HAWKEYE COMPANY
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
HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets
2013 and 2012
Year
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)
Required:
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
1. DIRECT 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
Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013 Sales $ 850 Cost of goods sold (3

Your firm is the auditor of Easy Hire Pty Ltd (Easy Hire).the company hires out equipment to industries such as construction, engineering & event management. It has 76 branches nat

Q. Let a firm's production function be given by K 0.3 L 0.7 . (i) Sketch (without specific numbers) the shape of the long run average and long-run marginal cost curves of the fir


A machine costing $210,400 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the mac

Definitions of manufacturing concepts  Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:  Materials and supplies used

Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor

Piece Rate System - Labour Remuneration However an employee is paid a fixed amount for all units produced irrespective of time in use; the wages payable are computed like fo

The value of un-sold stock. The stock is valued at cost or market price either is lower. Usually, the closing stock is not specified in the trial balance but is specified in adjust

Evaluate the Acquisition of Manufacturing Equipment XYZ Limited is a medium sized company providing a range of medical solutions. You, the financial manager has been asked to e