cash flows statements
xoonQ.42). P13-36B Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770
Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.
Barton Publication Company, Inc. Balance Sheet As of March 31, 2010 and 2009 | |||
| 2010 | 2009 | Increase (Decrease) |
Current assets : |
|
|
|
Cash | $ 55,600 | $14.700 | $40,900 |
Accounts receivable | 51,400 | 53,300 | (1,900) |
Inventories | 65,400 | 59,700 | 5,700 |
Prepaid expenses | 3,700 | 5,100 | (1,400) |
Long-term investment | 10,000 | 6,800 | 3,200 |
Equipment, net | 71,700 | 70,200 | 1,500 |
Land | 35,500 | 97,000 | (61,500) |
Total assets | 293,300 | $306,800 | (61,500) |
|
|
|
|
Current liabilities |
|
|
|
Note payable, short-term | $43,200 | $48,900 | $(5,700) |
Account payable | 4,300 | 3,500 | 800 |
Income tax payable | 13,700 | 15,500 | (1,800) |
Salary payable | 9,200 | 12,400 | (3,200) |
Interest payable | 8,200 | 7,400 | 800 |
Accrued liabilities | 2,900 | 3,400 | (500) |
Long-term note payable | 48,900 | 93,100 | (44,200) |
Common stock | 69,600 | 61,700 | 7,900 |
Retained earnings | 93,300 | 60,900 | 32,400 |
Total liabilities and equity | $293,300 | $306,800 | $(13,500) |
Selected transaction data for the year ended March 31, 2010, include the following :
- Net income, $77,000
- Paid long-term note payable with cash, $59,600
- Cash payments to employees, $43,000
- Loss on sale of land, $9,600
- Acquired equipment by issuing long-term note payable, $15,400
- Cash payments to suppliers, $147,100
- Cash paid for interest, $4,100
- Depreciation expense on equipment, $13,900
- Paid short-term note payable by issuing common stock, $5,700
- Paid cash dividends, $44,600
- Received cash for issuance of common stock, $2,200
- Cash received form customer, $299,400
- Cash paid for income taxes, $12,000
- Sold land for cash, $51,900
- Interest received (in cash), $1,000
- Purchased long-term investment for cash, $3,200
Requirements
- Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
- Also prepare a supplementary schedule of cash flows from operations using the direct method.
4. E13-13A, page 756: Calculate cash flows from operating, investing, and financing activities (direct method)
Compute the following cash flows for Express Service Company for the past year
1) The beginning balance of Retained Earnings was $135,000, while the end of the year balance of Retained Earnings was $177,000. Net income for the year was $65,000. No dividends payable were on the balance sheet. How much was paid in cash dividends during the year?
2) The beginning and ending balances of the common stock account were $215,000 and $273,000, respectively. Where would the increase in common stock appear on the statement of cash flows?
3) The beginning and ending balances of the Treasury stock account were $53,000 and $78,000 respectively. Where would the increase in the Treasury stock appear on the statement of cash flows?
4) The property, Plant, & Equipment (net) increased by $12,000 during the year to have a balance of $152,000 at the end of the year. Depreciation for the year was $19,000. Acquisitions of new plant assets during the year totaled $39,000. Plant assets were sold at a loss of $3,000
(a) What were the cash proceeds from the sale of plant assets?
(b) What amount would be reported on the investing section of the statement of cash flows? Would it be a source of cash or a use of cash?
(c) What amount, if any, would be reported on the operating section of the statement of cash flows.
ESSAY QUESTION MOL-8
Q.44). Research and find financial statements for two companies of your choosing. Drawing on information from this module and the course, analyze the statements and write an essay summarizing which of the two is a better investment. Include your reasons, using the course material evidence. Cite the financial statements andincorporate what you have learned in this course.(300 WORDS)
12 years ago
Purchase the answer to view it
8523372_solution.xlsx
