Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 9 years ago

I need help preparing a statement of cash flows for year ending 2011 using indirect method?

balance sheet

assets 2011 2010

cash 73,000 22,000

accts receivable 85,000 76,000

inventories 170,000 189,000

land 75,000 100,000

equipment 260,000 200,000

accumulated depreciation (66,000) (32,000)

total 597,000 555,000

liabilities and stockholders equity

accounts payable 39,000 47,000

bonds payable 150,000 200,000

common stock ($1 par) 216,000 174,000

retained earnings 192,000 134,000

total 597,000 555,000

additional information:

net income for 2011 was $103,000

cash dividends of 45,000 were declared and paid

bonds payable amounting to 50,000 were redeemed for cash 50,000

common stock was issued for 42,000 cash

no equipment was sold during 2011, but land was sold at cost.

please help, thank you

1 Answer

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  • 9 years ago
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    Homework Company

    Statement of Cash Flows

    For the Year Ended December 31, 2011

    Cash flows for operating activities

    Net income 103,000

    Increase in accounts receivable (9,000)

    Decrease in inventories 19,000

    Decrease in accounts payable (8,000)

    Depreciation expense 34,000

    Net cash flows for operating activities 139,000

    Cash flows for investing activities

    Cash received from sale of land 25,000

    Cash paid to purchase equipment (60,000)

    Net cash flows for investing activities (35,000)

    Cash flows for financing activities

    Cash paid to redeem bonds payable (50,000)

    Cash received from issuance of common stock 42,000

    Cash paid for dividends (45,000)

    Net cash flows for financing activities (53,000)

    Net increase in cash 51,000

    Cash balance January 1, 2011 22,000

    Cash balance December 31, 2011 73,000

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