Prepare a statement of cash flows for the Crosby Corporation. Follow general rules.?

Sales for the yr 2008 were $330.000, with COG sold being 60% of sales. Selling and admin expense was $33,000. Depreciation expense was 10%, while interest on bonds payable was 12%. these based on Dec 31, 2007 balances. Tax rate averaged 20%. $2,000 in preferred stock dividends were paid and $4,100 in dividens... show more Sales for the yr 2008 were $330.000, with COG sold being 60% of sales. Selling and admin expense was $33,000. Depreciation expense was 10%, while interest on bonds payable was 12%. these based on Dec 31, 2007 balances. Tax rate averaged 20%.

$2,000 in preferred stock dividends were paid and $4,100 in dividens wer paid to common stockholders. There were 10,000 shares of commom stock outstanding.

During 2008, cash balance and prepaid expenses balance were unchanged. Accounts receivable & inventory increased by 20%. A new machine was purchased on Dec. 31, 2008 at $60,000.

Accounts payable increased by 30%. At yr end, Dec. 31, 2008, notes payable increased by $10,000 and bonds payable decreased by $15,000. Common stock & paid-in capital in excess of par accounts did not change.

a. prepare income statement for yr 2008.
b. prepare a statement of retained earnings for yr 2008.
c. prepare a balance sheet as of Dec. 31, 2008.

27. Prepare a statement of cash flows for the Crosby Corporation and follow general procedures.

Prepare a statement of cash flows for the Crosby Corporation?
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,200,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000
Gross profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Selling and administrative expense . . . . . . . . . . . . . . . . . . . . 420,000
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Earnings before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Earnings after taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Earnings available to common stockholders . . . . . . . . . . . . . $ 150,000
Common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.25


Statement of Retained Earnings
For the Year Ended December 31, 2008
Retained earnings, balance, January 1, 2008 . . . . . . . . . . . . . . . . . . . . $500,000
Add: Earnings available to common stockholders, 2008 . . . . . . . . . . 150,000
Deduct: Cash dividends declared and paid in 2008 . . . . . . . . . . . . . 50,000
Retained earnings, balance, December 31, 2008 . . . . . . . . . . . . . . . . . $600,000

Comparative Balance Sheets
For 2007 and 2008
Year-End 2007/Year-End 2008
Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000 /$ 100,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 /350,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,000 /430,000
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000/ 30,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,000/ 910,000
Investments (long-term securities) . . . . . . . . . . . . . . . . . . . 80,000 /70,000
Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 /2,400,000
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . 1,000,000 /1,150,000
Net plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 /1,250,000
Total assets . ........................................... $1, 910,000 /$2, 230,000

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 /$ 440,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000/ 400,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 /50,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 720,000 /890,000
Long-term liabilities:
Bonds payable, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 /120,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 /1,010,000
Stockholders' equity:
Preferred stock, $100 per value . . . . . . . . . . . . . . . . . . . . . . 90,000 90,000
Common stock, $1 par value . . . . . . . . . . . . . . . . . . . . . . . . 120,000 120,000
Capital paid in excess of par . . . . . . . . . . . . . . . . . . . . . . . . 410,000 410,000
Retained earnings . . . . . . . . . .
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