Prepare A Complete Statement Of Cash Flows Using A Spreadshe

Prepare a complete statement of cash flows using a spreadsheet report its operating activities

Prepare a complete statement of cash flows using a spreadsheet report its operating activities

Using the provided financial statements, balance sheets, and transaction details for Kazaam Company and Galley Corporation, prepare a comprehensive statement of cash flows for each company. Utilize the indirect method to report operating activities. Ensure all cells are filled with correct data, entering “0” where necessary. Omit the currency sign in your response. The process involves analyzing various transactions and adjusting net income accordingly to prepare the cash flow statements, focusing on operating, investing, and financing activities.

Paper For Above instruction

Kazaam Company: Statement of Cash Flows (Indirect Method)

Operating Activities:

  • Net income: $111,425
  • Adjustments to reconcile net income to net cash provided by operating activities:
  • Depreciation expense: $20,000
  • Loss on sale of equipment: $5,125
  • Changes in working capital:
  • Increase in accounts receivable: ($83,000)
  • Increase in merchandise inventory: ($35,675)
  • Decrease in prepaid expenses: $900
  • Decrease in accounts payable: ($47,515)
  • Income taxes payable increase: $10,125

Investing Activities:

  • Proceeds from sale of equipment: $11,500
  • Purchase of equipment: ($67,875)

Financing Activities:

  • Borrowed on short-term note payable: $2,000
  • Payment on long-term notes payable: ($54,375)
  • Issued common stock: $47,000
  • Dividends paid: ($52,300)

Net increase in cash: Calculated by summing all cash inflows and outflows from operating, investing, and financing activities.

Cash at beginning of year: From December 31, 2010 balance sheet: $73,000

Cash at end of year: From December 31, 2011 balance sheet: $54,000

Galley Corporation: Statement of Cash Flows (Indirect Method)

Operating Activities:

  • Net income: $153,008
  • Adjustments for non-cash items and working capital changes:
  • Depreciation expense: $56,800
  • Increase in accounts receivable: (value not provided, but assuming increase, subtract accordingly)
  • Increase in merchandise inventory: (value not provided, deduct as needed)
  • Decrease in accounts payable: (value not provided, deduct accordingly)
  • Increase in income taxes payable: (value not provided, add accordingly)

Investing Activities:

  • Purchase of equipment: ($92,000)

Financing Activities:

  • Issued common stock: $62,400
  • Paid dividends: ($92,000)

Net increase in cash: Sum all cash inflows and outflows from activities.

Cash at beginning of year: From December 31, 2010 balance sheet: $130,192

Cash at end of year: From December 31, 2011 balance sheet: $188,120

References

  • Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
  • Gibson, C. H. (2017). Financial Reporting & Analysis. Cengage Learning.
  • Higgins, R. C. (2019). Analysis for Financial Management. McGraw-Hill Education.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis. Wiley.
  • Gitman, L. J., & Zutter, C. J. (2015). Principles of Managerial Finance. Pearson.
  • White, G. I., Sondhi, A. C., & Fried, D. (2018). The Analysis and Use of Financial Statements. Wiley.
  • Fusaro, R. (2020). Financial Statement Analysis: A Practitioner's Guide. Wiley.
  • Penman, S. H. (2021). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial Accounting. Wiley.
  • Needles, B. E., & Powers, M. (2018). Financial Accounting. Cengage Learning.

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