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    Problem 7-5

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    Irfan ghani
    The document provides financial statements for Niagara Company for the year ended December 31, Year 9 including a statement of cash flows using the direct method, an income statement, and a comparative balance sheet. The statement of cash flows shows the company had a net cash increase of $10 from $65 in operating activities, -$50 in investing activities, and -$5 in financing activities. The income statement shows the company had net income of $60. The comparative balance sheet shows total assets increased $50 to $1900 from $1800 and retained earnings increased $30 to $130 from $100.

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    Problem 7-5

    Uploaded by

    Irfan ghani
    191 views2 pages
    The document provides financial statements for Niagara Company for the year ended December 31, Year 9 including a statement of cash flows using the direct method, an income statement, and a comparative balance sheet. The statement of cash flows shows the company had a net cash increase of $10 from $65 in operating activities, -$50 in investing activities, and -$5 in financing activities. The income statement shows the company had net income of $60. The comparative balance sheet shows total assets increased $50 to $1900 from $1800 and retained earnings increased $30 to $130 from $100.

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    PROBLEM 7-5

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    The document provides financial statements for Niagara Company for the year ended December 31, Year 9 including a statement of cash flows using the direct method, an income statement, and a comparative balance sheet. The statement of cash flows shows the company had a net cash increase of $10 from $65 in operating activities, -$50 in investing activities, and -$5 in financing activities. The income statement shows the company had net income of $60. The comparative balance sheet shows total assets increased $50 to $1900 from $1800 and retained earnings increased $30 to $130 from $100.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    191 views2 pages

    Problem 7-5

    Uploaded by

    Irfan ghani
    The document provides financial statements for Niagara Company for the year ended December 31, Year 9 including a statement of cash flows using the direct method, an income statement, and a comparative balance sheet. The statement of cash flows shows the company had a net cash increase of $10 from $65 in operating activities, -$50 in investing activities, and -$5 in financing activities. The income statement shows the company had net income of $60. The comparative balance sheet shows total assets increased $50 to $1900 from $1800 and retained earnings increased $30 to $130 from $100.

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    PROBLEM 7-5

    Prepare statement of cash flow using direct method

    NIAGARA COMPANY
    Statement of Cash Flows
    For Year Ended December 31, Year 9

    Cash Flows From Operating Activities


    Cash Receipt From Customer 980
    Cash Paid For Inventories -645
    Cash Paid For Operating Expense -270
    Net Cash From Operating Activites 65

    Cash Flows From Investing Activities


    Purchase Fixed Asset -50

    Cash Flows From Financing Activities


    Long Term Debt 50
    Notes Payable to Bank -25
    Divend cash From RE -30
    Net Cash From Financing Activities -5
    Net Increase in Cash 10
    Beginning Cash Balance 50
    Ending Cash Balance 60

    NIAGARA COMPANY
    Income Statement
    For Year Ended December 31, Year 9
    Sales 1000
    Cost of goods sold -650
    Depreciation expense -100
    Sales and general expense -100
    Interest expense -50
    Income tax expense -40
    Net income 60

    Year 8 Year 9 Selisih


    Assets
    Cash 50 60 10
    Accounts receivable, net 500 520 20
    Inventory 750 770 20
    Current assets 1300 1350 50
    Fixed assets, net 500 550 50
    Total assets 1800 1900
    Liabilities and Equity
    Notes payable to banks 100 75 -25
    Accounts payable 590 615 25
    Interest payable 10 20 10
    Current liabilities 700 710 10
    Long-term debt 300 350 50
    Deferred income tax 300 310 10
    Capital stock 400 400 0
    Retained earnings 100 130 30
    Total liabilities and equity 1800 1900

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