Prepare the statement of cash flows for Franklin Company using ...

[mpobi80]

Prepare the statement of cash flows for Franklin Company using the indirect method.
 
  Franklin Company
  Income Statement
  For the Year Ended December 31, 2015
 
   Revenues 9,000
   Depreciation expense  650
   Other operating expenses 7,100 7,750
   Income before income taxes 1,250
   Interest expense 440
   Income tax expense 270
   Net income  540
 
  Franklin Company
  Balance Sheet
  December 31, 2015 and 2014
 
   2015 2014 2015 2014
  Assets: Liab. & SE:
  Cash  230  480 A/P  370 550
  A/R 510 590 IncTaxes/Pay. 120 280
  Inventories 980 960 LT debt 910 830
  Plant & Equip. 3,140 2,150 Common Stock 1,100 1,350
  Less: Acc. Depr.(1,520) (870) Retained Earnings 840 300
  Total Assets 3,340 3,310 Total Liab. & SE 3,3403,310
 
 
 What will be an ideal response?

Question 2

Form 941 must be submitted quarterly.
  Indicate whether the statement is true or false

[14vl19]

Answer to Question 1

Franklin Company
Statement of Cash Flows
For the Year Ended December 31, 2015

Net income 540
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities:
Depreciation 650
Changes in assets and liabilities:
Accounts receivable 80
Inventory (20)
Accounts payable (180)
Income taxes payable (160)
Net cash provided by operating activities 910
Cash flows from investing activities:
Capital expenditures (990)
Net cash used by investing activities (990)
Cash flows from financing activities:
Proceeds from long-term debt 80
Repurchase of common stock (250)
Net cash used by financing activities (170)
Net increase (decrease) in cash (250)
Cash at beginning of period 480
Cash at end of period 230


Answer to Question 2

T

[mpobi80]

Thanks for the timely response, appreciate it

[frankwu0507]

YES! Correct, THANKS for helping me on my review