cash flows

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Increase

2012 2011 (Decrease)

Current Assets Revenue

Cash and Cash Equivalents $ 2,031,300 $ 2,560,000 $ (528,700) Sales $ 43,833,000

Accounts Receivable 7,202,000 6,230,000 972,000 Dividend Revenue 250,000

Inventories 7,316,000 6,786,000 530,000 Total Revenues 44,083,000 

Total Current Assets 16,549,300 15,576,000 973,300 Expenses

Fixed Assets Cost of Goods Sold 28,063,000 

Land 1,811,000 1,728,000 83,000 Salary Expense 8,670,000

Equipment, net 13,889,000 10,121,000 3,768,000 Depreciation Expense 1,010,000

Total Fixed Assets 15,700,000 11,849,000 3,851,000 Other Operating Expenses 4,183,000

Total Assets $ 32,249,300 $ 27,425,000 $ 4,824,300 Interest Expense 517,000

Income Tax Expense 370,000

Total Expenses 42,813,000 

Current Liabilities Net Income $ 1,270,000 

Accounts Payable $ 10,782,000 $ 10,038,000 $ 744,000

Total Current Liabilities 10,782,000 10,038,000 744,000 

Long-term Liabilities

Bonds Payable 11,236,000 8,370,000 2,866,000

Total Liabilities 22,018,000 18,408,000 3,610,000

Stockholders' Equity

Common Stock 2,629,000 2,457,000 172,000 

Retained Earnings 8,676,300 7,637,000 1,039,300

Treasury Stock (1,074,000) (1,077,000) 3,000

Total Stockholders' Equity 10,231,300 9,017,000 1,214,300

Total Liabilities & Stockholders' Equity $ 32,249,300 $ 27,425,000 $ 4,824,300

Additionally, SFCC Corporation, Inc. purchased land of $83,000 by financing it 100% with bonds payable during 2012.

Requirements. Using the above financial statements, create the following:

1. Answer the following questions:

 a. How much cash is received from the issuance of bonds payable?

 b. How much equipment has been purchased this year?

 c. What is the dollar amount of divends?

 d. How much cash was exchanged in the purchase of the land?

2. Prepare the statement of cash flows using the indirect method.

3. Prepare the Operating Activities section of statement of cash flows using the direct method.

4. Comment on your thoughts regarding the two different methods.

December 31, 2012 and 2011 For Year Ended December 31, 2012

ACCT 122 - Principles of Accounting 2

Project #2 - Statement of Cash Flows

SFCC Corporation, Inc. SFCC Corporation, Inc.

Comparative Balance Sheet Income Statement

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