Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Avalos Corporation is preparing its annual financial statements at December 31 of the curr...

Avalos Corporation is preparing its annual financial statements at December 31 of the current year Listed here are the items on its statement of cash flows presented in alphabetical order

Avalos Corporation is preparing its annual financial statements at December 31 of the current year. Listed here are the items on its statement of cash flows presented in alphabetical order. Parentheses indicate that a listed amount should be subtracted on the cash flow statement. The beginning balance in cash was $25,000 and the ending balance was $50,000. Cash borrowed on three-year note ................................. $30,000 Decrease in accounts payable ....................................... (3,000) Decrease in inventory ................................................ 1,000 Increase in accounts receivable .................................... (9,000) Land purchased ....................................................... (36,000) Net income ........................................................... 25,000 New delivery truck purchased for cash ........................... (7,000) Stock issued for cash ................................................ 24,000 Required: Prepare the current year statement of cash flows for Avalos Corporation. The section reporting cash flows from operating activities should be prepared using the indirect method discussed in the chapterAvalos Corporation is preparing its annual financial statements at December 31 of the current year. Listed here are the items on its statement of cash flows presented in alphabetical order. Parentheses indicate that a listed amount should be subtracted on the cash flow statement. The beginning balance in cash was $25,000 and the ending balance was $50,000. Cash borrowed on three-year note ................................. $30,000 Decrease in accounts payable ....................................... (3,000) Decrease in inventory ................................................ 1,000 Increase in accounts receivable .................................... (9,000) Land purchased ....................................................... (36,000) Net income ........................................................... 25,000 New delivery truck purchased for cash ........................... (7,000) Stock issued for cash ................................................ 24,000 Required: Prepare the current year statement of cash flows for Avalos Corporation. The section reporting cash flows from operating activities should be prepared using the indirect method discussed in the chapter

May 14 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions