29) Team Shirts, Inc. recognized $13,880 in salaries and wages expense for the quarter. At the beginning of the quarter, the balance in Salaries Payable was $2,300. At the end of the quarter, the balance was $3,425. How is the accounting information for these items reported on the statement of cash flows using the
indirect
method?
30) Use the following information from Artizan, Inc., to prepare the operating activities section of the statement of cash flows for May using the indirect method.
Beginning cash balance:
|
$21,470
|
Ending cash balance:
|
63,735
|
Net change in accounts receivable
|
1,800
|
Net change in inventory
|
(2,675)
|
Net change in accounts payable
|
(890)
|
Depreciation expense
|
8,000
|
Net income
|
23,450
|
Cash paid for dividends
|
625
|
Cash received from a loan
|
9,000
|
Purchase of treasury of stock
|
3,780
|
Cash received from sale of studio equipment
|
6,235
|
Answer: Artizan, Inc.
Statement of Cash Flows
For the Month Ended May 31, 2011
|
Cash flows from operating activities:
|
|
|
|
Net income
|
$23,450
|
|
|
Depreciation expense
|
8,000
|
|
|
Net increase in accounts receivable
|
(1,800)
|
|
|
Net decrease in inventory
|
2,675
|
|
|
Net decrease in accounts payable
|
(890)
|
|
|
Net cash from operating activities
|
|
$31,435
|
|
|
|
|
|
Diff: 3
Skill: Analytic skills
31) Team Shirts, Inc. recognized $4,690 of insurance expense for the year. At the beginning of the year, the balance in Prepaid insurance was $400. At the end of the year, the balance was $775. How is the accounting information for these items reported on the statement of cash flows using the
indirect
method?
32) Team Shirts, Inc. recognized $4,690 of insurance expense for the year. At the beginning of the year, the balance in Prepaid insurance was $775. At the end of the year, the balance was $400. How is the accounting information for these items reported on the statement of cash flows using the
indirect
method?
33) Use the following information from The Mane Event, Inc., to prepare the operating activities section of the statement of cash flows for the year ended December 31, 2011 using the indirect method.
Beginning cash balance
|
$40,000
|
Cash paid for dividends
|
(600)
|
Cash received from a loan
|
10,000
|
Depreciation expense
|
3,000
|
Net change in accounts receivable
|
(1,000)
|
Net change in inventory
|
2,000
|
Net change in accounts payable
|
900
|
Net income
|
10,000
|
Proceeds from sale of studio equipment
|
5,000
|
Purchase of treasury of stock
|
(4,000)
|
34) Use the following information from Artizan, Inc. to prepare the statement of cash flows for May using the indirect method.
Beginning cash balance:
|
$21,470
|
Ending cash balance:
|
63,735
|
Net change in accounts receivable
|
1,800
|
Net change in inventory
|
(2,675)
|
Net change in accounts payable
|
(890)
|
Depreciation expense
|
8,000
|
Net income
|
23,450
|
Cash paid for dividends
|
625
|
Cash received from a loan
|
9,000
|
Purchase of treasury of stock
|
3,780
|
Cash received from sale of studio equipment
|
6,235
|