Cannon Company has the following information for the year ending December 31 2015 assignment help

Plain Touch Doctrine law homework help
March 11, 2023
Fear in Richard Wright s Native Son Outline and introduction help
March 11, 2023

Cannon Company has the following information for the year ending December 31 2015 assignment help

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.

  1. Prepare Cannon Company’s statement of cash flows for the year ending December 31, 2015 using the indirect method.
  2. 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)


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)


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


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


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!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.

Buy Custom Nursing Papers