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Horngren'S Financial And Managerial Accounting
Found in: Page 782

Short Answer

Using a spreadsheet to prepare the statement of cash flows—indirect method Use the Boost Plus, Inc. data in Exercise E14-21 to prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method.

Net increase/(decrease) in cash is $26,000.

See the step by step solution

Step by Step Solution

Step 1: Statement of cash flows using indirect method

Boost Plus Inc.

Spreadsheet for statement of cash flows

Year ended December 31, 2018
Panel A-Balance Sheet


Transaction Analysis








Account receivables








Plant Assets




Accumulated Depreciation




Merchandise Inventory




Total Assets





Accounts Payable




Accrued Liabilities




Common Stock




Notes Payable (Long-Term)




Retained Earnings




Total Liabilities and Shareholder’s Equity





Panel B- Statement of Cash Flows

Cash Flows from Operating Activities

Net Income


Adjustments to reconcile Net Income to Net cash provided by Operating Activities:

Depreciating Expense


Decrease in account receivables


Increase in merchandise inventory


Increase in account payable


Decrease in accrued liability


Net cash provided/ (used) in operating activities

Cash flow from Investing Activities:

Purchase of plant


Sale of land


Net cash provided/ (used) in Investing activities

Cash flow from Financing Activities:

Issuance of common stock


Payment of notes payable


Dividend paid


Net cash provided/ (used) in financing activities

Net increase/ (decrease) in cash




Step 2: Schedule of non-cash investing and financing activities

Boost Plus Inc.

Statement of Cash Flows (Partial)

For the year ended December 31, 2018

Non-cash Investing and financing activities

Acquisition of land by issuing long-term notes payable


Total Non-cash Investing and financing activities


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