Please find the file xlsx attached which includes the supporting material. calculate the cash flow from Operating Activities, show ALL YOU WORK, STEP BY STEP and submit using the same file (xslx)

Please find the file xlsx attached which includes the supporting material. calculate the cash flow from Operating Activities, show ALL YOU WORK, STEP BY STEP and submit using the same file (xslx)

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Comprehensive Problem 4:
Part 4
Bailey’s Chocolates has provided statements of retained earnings,
income statements,
and balance
sheets for the months of January and February 2012.
The company wants you to calculate the cash
flow from operating activities for the period ending February 2012 using the indirect method.
Using the Indirect Method produce a Cash Flow from Operating Activities.
Cash Flows from Operating Activities (Indirect Method)
Net Cash Flow from Operating Activities

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Bailey’s Chocolates
Bailey’s Chocolates
Income Statement
Income Statement
Bailey’s Chocolates
Month Ending January 31, 2012
Month Ending February 29, 2012
Statement of Retained Earnings
Month Ending January 31, 2012
Revenue
$20,000
Revenue
$23,000
Cost of Good Sold
(5,000)
Cost of Good Sold
(7,000)
Retained earnings, January 1, 2012
$-
Gross Margin
$15,000
Gross Margin
$16,000
Net Gain, January 31, 2012
$9,930
Expenses
Expenses
Salary Expense
900
Salary Expense
1,000
Less Withdrawals

Supplies Expense
20
Supplies Expense
30
Increase in Retained Earnings
$9,930
Office Equipment Expense
200
Office Equipment Expense
225
Retained earnings, January 31, 2012
$9,930
Rent Expense
1,000
Rent Expense
1,000
Insurance Expense
100
Insurance Expense
100
Interest Expense-Note
100
Interest Expense-Note
100
Interest Expense-Mortgage
1,000
Interest Expense-Mortgage
1,000
Bailey’s Chocolates
Depreciation Expense-Building
1,500
Depreciation Expense-Building
1,500
Statement of Retained Earnings
Depreciation Expense-Equipment
250
Depreciation Expense-Equipment
250
Month Ending February 29, 2012
Total Expenses
$5,070
Total Expenses
$5,205
Net Income
$9,930
Net Income
$10,795
Retained earnings, February 1, 2012
$9,930
Net Gain, February 1, 2012
$10,795
$20,725
Bailey’s Chocolates
Bailey’s Chocolates
Less Withdrawals (Dividends)
$(9,930)
Balance Sheet
Balance Sheet
Increase in Retained Earnings
$10,795
Month Ending January 31, 2012
Month Ending February 29, 2012
Retained earnings, February 29, 2012
$10,795
Assets
Liabilities
Assets
Liabilities
Current Assets
Current Liabilities
Current Assets
Current Liabilities
Cash
$85,260
Accounts Payable
$3,500
Cash
$90,000
Accounts Payable
$3,200
Accounts receivable
10,600
Salary Payable
200
Accounts receivable
10,875
Salary Payable
150
Inventory
3,220
Total Current Liab
$3,700
Inventory
2,750
Total Current Liab
$3,350
Supplies
150
Supplies
120
Prepaid Office Equipm
150
Long-Term Liabilities
Prepaid Office Equipm
100
Long-Term Liabilities
Prepaid Rent
1,500
Notes Payable
$48,000
Prepaid Rent
500
Notes Payable
$48,000
Security Deposit
1,500
Int Pay-Note
400
Security Deposit
1,500
Int Pay-Note
500
Prepaid Insurance
400
Mortgage Payable
480,000
Prepaid Insurance
300
Mortgage Payable
480,000
Total Current Assets
$102,780
Int Pay-Mort
2,000
Total Current Assets
$106,145
Int Pay-Mort
3,000
Total LT Liabilities
$530,400
Total LT Liabilities
$531,500
Property, Plant & Equipment
Total Liabilities
$534,100
Property, Plant & Equipment
Total Liabilities
$534,850
Building
500,000
Building
500,000
Acc Dep-B
(1,500)
498,500
Shareholder’s Equity
Acc Dep-B
(3,000)
497,000
Shareholder’s Equity
Equipment
9,000
Common Stock
$6,000
Equipment
9,000
Common Stock
$6,000
Acc Dep-E
(250)
8,750
APIC-Common
60,000
Acc Dep-E
(500)
8,500
APIC-Common
60,000
Total PP & E
$507,250
Retained Earnings
9,930
Total PP & E
$505,500
Retained Earnings
10,795
Total Equity
$75,930
Total Equity
$76,795
Total Assets
$610,030
Total Liab & Equity
$610,030
Total Assets
$611,645
Total Liab & Equity
$611,645

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