statement of cash flows_06Jan

$14.00

Description

1.)
Prepare a statement of cash
flows using the indirect method for the year ending December 31, 2011.

Balance
Sheet

2011

2010

Cash

$ 18,000

$25,000

Supplies

10,000

12,000

Accounts receivable (net)

31,000

35,000

Inventory

51,000

52,000

Prepaid expenses

9,000

3,000

Buildings, and equipment

400,000

360,000

Less: accumulated depreciation

(100,000)

(75,000)

Total assets

$419,000

$412,000

Accounts payable

$18,000

$13,000

Accrued expenses

10,000

8,500

Note payable, Short Term

20,000

60,000

Note payable, Long Term

20,000

15,500

Capital stock

296,000

280,000

Retained earnings

55,000

35,000

Total liabilities and equities

$419,000

$412,000

Additional data:

One piece of
equipment was purchased during the year.

Short term debt was
repaid while long term debt was issued.

Dividends were paid
during the year.

A condensed income
statement for the year is as follows:

Sales

470,000

Cost of goods sold

220,000

Gross profit

250,000

Depreciation expense

25,000

Operating expenses, other

138,000

Operating income

87,000

Interest Expense

(2,000)

Net income

85,000

Reviews

There are no reviews yet.

Be the first to review “statement of cash flows_06Jan”

Your email address will not be published. Required fields are marked *