1. The information below depicts 2013 summary for Match Company. 2. Lancaster Inc.s December 31, 2013 balance sheet accounts are copied below:

1. The information below depicts 2013 summary for Match Company. 2. Lancaster Inc.s December 31, 2013 balance sheet accounts are copied below:

1. 1. The information below depicts 2013 summary for Match Company. The company has two operations, that is, manufacturing and wholesale. The amounts are in thousands.Sales revenue $25,000Cost of goods sold 16,000Interest revenue 70,000Selling and administrative expenses 4,700Goodwill write-off 820 2014 Income taxes 1,244Gain on sale of investments (This is normal and recurring) 110Loss due to flood damage, net of tax (This is extraordinary item) 390Loss on disposition of wholesale division, net of tax 440Loss on operations of wholesale division, net of tax 90Match Company has 500,000 shares of common stock outstanding throughout the year. The company decided to discontinue its entire wholesale operations. On August 31, 2013, Match Company sold the wholesale operations to Reed Company.Required:Prepare a multi-step income statement and earnings per share for the Match Company. L 2. Lancaster Inc.s December 31, 2013 balance sheet accounts are copied below:Cash $20,000 Accounts receivable 21,200 Accounts payable 30,000Long-term notes payable 41,000Long-term Investments 32,000 Common stock 100,000Property, plant, and equipment assets (net of depreciation) 81,000 Retained earnings 23,200Land 40,000 During 2014, the following transactions occurred. Lancaster Inc.1. Purchased a tract of land for $18,000 cash.2. Sold part of its $32,000 investment for $15,000. This transaction resulted in a gain of $3,400. The investment was classified as available-for-sale.3. Issued additional $20,000 in common stock. The issue was at par.4. Declared and paid dividends of $8,200 to stockholders.5. Purchased land through the issuance of $30,000 in bonds.6. Retired Long-term notes payable with the face value of $16,000. The company paid $16,000 cash.7. Recorded depreciation expense of $11,000.Lancasters Net income for 2014 was $32,000.Balances on December 31, 2014 are below:Cash $32,000Accounts Receivable $41,600Accounts Payable $30,000Required:a. Prepare a statement of cash flows for year ended December 31, 2014. Use the indirect method for cash flows from operating activities. b. How can users of financial statements utilize statement of cash flows in making informed decisions?


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