Question

sharp screen films, inc., is developing its annual financial statements at december 31, current year. the statements are complete except for the statement of cash flows. the completed comparative balance sheets and income statement are summarized as follows: current year prior year balance sheet at december 31 cash $ 73,250 $ 63,500 accounts receivable 15,250 21,350 merchandise inventory 23,450 18,000 property and equipment 209,250 160,350 less: accumulated depreciation (57,450 ) (45,750 ) $ 263,750 $ 217,450 accounts payable $ 16,500 $ 19,000 wages payable 2,000 2,700 note payable, long-term 56,300 71,000 common stock and additional paid-in capital 103,950 65,900 retained earnings 85,000 58,850 $ 263,750 $ 217,450 income statement for current year sales $ 205,000 cost of goods sold 123,500 depreciation expense 11,700 other expenses 43,000 net income $ 26,800

Answer 1

Financial statements are written records that outline a company's operations as well as its financial success. Government organizations, accounting firms, and other entities frequently audit financial statements to assure their accuracy and for reasons related to taxes, financing, or investment. The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements used by for-profit organizations. Nonprofit organizations employ a comparable but distinct set of financial statements.

                                                              SHARP SCREEN FILMS, INC.    

                                                                Statement of Cash Flows    

                                    For the Year Ended December 31, Current year

Cash flows from operating activities:          

Net income                                                                 46050      

Adjustments to reconcile net income to net cash provided by operating activities:          

Depreciation expense                                 13650        

Decrease in accounts receivable                  7200        

Increase in merchandise inventory         -4850        

Decrease in accounts payable               -10200        

Decrease in wages payable                            -400            5400      

                                                                                     51450      

Net cash provided by operating activities          

Cash flows from investing activities:          

Cash payments to purchase fixed assets -58950        

Net cash used in investing activities                              -58950      

Cash flows from financing activities:          

Cash payments on long-term note          -10900        

Cash payments for dividends                 -13950        

Cash receipts from issuing stock                  33400        

Net cash provided by financing activities                         8550      

Net increase in cash during the year                                 1050      

Cash balance, January 1, current year                                 63900      

Cash balance, December 31, 2015 current year                64950      

Financial information is used by analysts and investors to assess a company's performance and forecast the course of its stock price in the future. The company's annual report, which includes its financial statements, is among the most significant sources of trustworthy and audited financial data.

Investors, market analysts, and creditors analyze the financial statements to assess the strength of a company's finances and future profits potential. The statement of cash flows, income statement, and balance sheet are the three main financial statement reports.

Learn more about financial statements here

brainly.com/question/24296949

#SPJ4