ACC - The CFS Corporation

1.Based on the following information, prepare a statement of cash flows for Year 2 using the indirect
method. (20 points)
The CFS Corporation
Comparative Balance Sheet
As of December 31, Year 1 and Year 2
December 31,
Year 1
Assets
Current assets
Cash
Accounts receivable
Inventories
Total current assets
Property, plant, and equipment
Land
Building and equipment
Accumulated depreciation
Total property, plant,and equipment
Total Assets
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
Total current liabilities
Noncurrent liabilities
Bonds payable
Notes payable
Total noncurrent liabilities
Shareholders' equity
Common stock
Retained earnings
Total shareholders' equity
Total Liabilities and Shareholders' Equity

Year 2

$ 10,000
20,000
15,000
45,000

$30,000
15,000
20,000
65,000

10,000
100,000
(10,000)
100,000
$145,000

10,000
120,000
(20,000)
110,000
$175,000

$ 20,000
20,000

$ 30,000
30,000

50,000
20,000
70,000

40,000
30,000
70,000

20,000
35,000
55,000
$145,000

30,000
45,000
75,000
$175,000

Dividends paid during Year 2 are $0. There were no dispositions of property during the year.