How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Bizhelp Your Own Question

Bizhelp
Bizhelp, CPA
Category: Multiple Problems
Satisfied Customers: 5726
Experience:  BA degree and Certified Public Accountant
Type Your Multiple Problems Question Here...
Bizhelp is online now
A new question is answered every 9 seconds

scf—direct and Indirect Methods From Comparative Financial

Resolved Question:

scf—direct and Indirect Methods From Comparative Financial Statements)

3 4 6 8
Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2012, are shown. The company is preparing its statement of cash flows.
CHAPMAN COMPANY
Comparative Balance Sheet
As of May 31

2012

2011
Current assets

Cash

$ 28,250

$ 20,000
Accounts receivable

75,000

58,000
Inventory

220,000

250,000
Prepaid expenses

9,000

7,000
Total current assets

332,250

335,000
Plant assets

Plant assets

600,000

502,000
Less: Accumulated depreciation—plant assets

150,000

125,000
Net plant assets

450,000

377,000
Total assets

$782,250

$712,000
Current liabilities

Accounts payable

$123,000

$115,000
Salaries and wages payable

47,250

72,000
Interest payable

27,000

25,000
Total current liabilities

197,250

212,000
Long-term debt

Bonds payable

70,000

100,000
Total liabilities

267,250

312,000
Stockholders' equity

Common stock, $10 par

370,000

280,000
Retained earnings

145,000

120,000
Total stockholders' equity

515,000

400,000
Total liabilities and stockholders' equity

$782,250

$712,000
CHAPMAN COMPANY
Income Statement
For the Year Ended May 31, 2012
Sales

$1,255,250
Cost of goods sold

722,000
Gross profit

533,250
Expenses

Salaries and wages expense

252,100
Interest expense

75,000
Depreciation expense

25,000
Other expenses

8,150
Total expenses

360,250
Operating income

173,000
Income tax expense

43,000
Net income

$  130,000
The following is additional information concerning Chapman's transactions during the year ended May 31, 2012.

1.
All sales during the year were made on account.
2.
All merchandise was purchased on account, comprising the total accounts payable account.
3.
Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock.
4.
The “other expenses” are related to prepaid items.
5.
All income taxes incurred during the year were paid during the year.
6.
In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value.
7.
Cash dividends of $105,000 were declared and paid at the end of the fiscal year.
Instructions
(a)
Compare and contrast the direct method and the indirect method for reporting cash flows from operating activities.
(b)
Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2012, using the direct method. Be sure to support the statement with appropriate calculations. (A reconciliation of net income to net cash provided is not required.)
(c)
Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2012.
Submitted: 9 months ago.
Category: Multiple Problems
Expert:  Bizhelp replied 9 months ago.
HiCustomer

Thanks for requesting me.

I am working on this and will answer later today. If you have a more urgent deadline, please let me know.
Customer: replied 9 months ago.

No that is totally fine & Thank you!!

Expert:  Bizhelp replied 9 months ago.
Hi,

Thanks for your question.

Please click here to download the solution.


Hope this helps!
Bizhelp, CPA
Satisfied Customers: 5726
Experience: BA degree and Certified Public Accountant
Bizhelp and other Multiple Problems Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • linda_us

    Master's Degree

    Satisfied Customers:

    1051
    Business Analyst and Solution Consultant with over 9 years of experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg linda_us's Avatar

    linda_us

    Master's Degree

    Satisfied Customers:

    1051
    Business Analyst and Solution Consultant with over 9 years of experience.
  • http://ww2.justanswer.com/uploads/ED/educatortech/2012-6-7_1256_williams4.64x64.jpg Mr. Gregory White's Avatar

    Mr. Gregory White

    Master's Degree

    Satisfied Customers:

    775
    M.A., M.S. Education / Educational Administration
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Doctoral Degree

    Satisfied Customers:

    565
    Lawyer, Accountant and Researcher
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Bachelor's Degree

    Satisfied Customers:

    528
    Completed by BA degree in 1988 and graduated with a GPA of 4.0
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    B.Com

    Satisfied Customers:

    384
    have completed B.Com and CA Finalist
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    373
    BA degree and Certified Public Accountant
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg MyVirtualCPA's Avatar

    MyVirtualCPA

    Master's Degree

    Satisfied Customers:

    135
    Master's degree holder who loves to help you understand your MC homework problems
 
 
 

Related Multiple Problems Questions