Skip to content

I need to complete statement of cashflows based on the follo

    I need to complete statement of cashflows based on the following . Need solution for Part A, B, and C. I can pay $30.Part A (30 points) Cannon Company has the following information for the year ending December 31, 2015. Long-term debt of $18,000 was issued for cash.Cash paid for labor during 2015 amounted to $489,500.During the year, Cannon experienced a pension outflow of $14,000.Dividends of $34,000 were received.Cannon’s cash balance at the beginning of 2015 was $975,000; at the end of 2015 the cash balance was $839,500.The company made an investment of $310,000 in an affiliate company.A lease payment of $110,000 was made on November 1, 2015. There is no asset recorded in connection with the lease.During the year, Cannon collected $780,000 cash from customers.Cash paid for income taxes amounted to $56,000 for all of 2015.During 2015, Cannon discontinued its consumer electronics division. The business was sold resulting in a $12,000 net cash inflow. Prepare Cannon Company’s statement of cash flows for the year ending December 31, 2015 using the indirect method.Explain how the indirect statement of cash flows that you prepared would differ under IFRS rules. Assume this is a nonfinancial entity. Part B (30 points) The following Income Statement and Operating Cash Flow information pertain to Receivership Inc.’s operations for the year ended December 31, 2014. Prepare the net cash flow from operating activities section of the cash flow statement using the direct method. Income statement for the year ended December 31, 2014 Revenues 1,328 COGS 587 Rent expenses 152 Wages expenses 136 Insurance expenses 53 Other SG&A (includes depreciation expenses) 198 Interest expenses 30 Gain on sale of asset (5) 1,151 Income before tax 177 Tax 62 Net income 115 Cash flow provided by operating activities (indirect method), for the year ended December 31, 2014 Net income 115 Depreciation 32 Gain on sale of asset (5) 142 Increases/decreases in A/R 26 Inventories (35) Prepaid rent 13 A/P 28 Wages payable (20) Tax payable 5 Interest payable (2) Advances from customers (3) Other accrued SG&A 5 17 Net cash provided by operating activities 159 Part C (40 points) The following information and financial statements excerpts pertain to Liquidity Inc. a. All short term investments (securities available for sale) were purchased on 12/31/14 and sold during 2015. b. The company entered a lease agreement on 12/31/15. c. Fixed assets with a net book value of $15 were sold during the year. d. The company repaid the current portion of long-term debt during the year. e. Dividend was declared and partially paid. 2014 2015 Assets Cash 54 45 Short term investments 95 0 Accounts receivable 45 85 Inventory 52 75 Prepaid general expenses 11 15 Fixed assets under capital lease, net 0 50 Fixed assets, net 165 228 422 498 Liabilities and stockowners’ equity Accounts payable 38 48 Wages payable 12 6 Tax payable 3 5 Dividend payable 0 4 Current portion of long term debt 10 12 Obligations under capital leases 0 50 Long term debt 183 180 Common stock 150 163 Retained earnings 26 30 422 498

    Do You Need A Similar Assignment Done For You From Scratch? We Have Qualified Writers To Help You. We Assure You An A+ Quality Paper That Is Free From Plagiarism. Order Now For An Amazing Discount!

    Very professional support! Highly recommended.


    Researched complicated topic and delivered report by the requested deadline. The paper is of a high standard reflecting careful research and clear assessments. I recommend

    Daria K


    It’s a 5 start for me. Excellent research and writing. The paper reflects a careful assessment of scientific information.



    With Gib’s reflection, they wrote a really specific essay. Very well written, containing all of the languages I required and excellent references. The writer follows my instructions and writes clearly in English.

    Mario G


    I am so grateful and I am 100% happy with your work.



    A fantastic piece of work 👏. The writer demonstrated full knowledge of the topic and applying the relevant provided material. Well done.