statement of cash flows06Jan

statement of cash flows06Jan

1.) Prepare a statement of cash flows using the indirect method for the year ending December 31, 2011. Balance Sheet20112010Cash$ 18,000$25,000Supplies10,00012,000Accounts receivable (net)31,00035,000Inventory51,00052,000Prepaid expenses9,0003,000Buildings, and equipment400,000360,000Less: accumulated depreciation(100,000)(75,000)Total assets$419,000$412,000Accounts payable$18,000$13,000Accrued expenses10,0008,500Note payable, Short Term20,00060,000Note payable, Long Term20,00015,500Capital stock296,000280,000Retained earnings55,00035,000Total liabilities and equities$419,000$412,000Additional 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 470,000Cost of goods sold220,000Gross profit250,000Depreciation expense 25,000Operating expenses, other 138,000Operating income87,000Interest Expense(2,000)Net income85,000


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