Exercise 8: Preparing the Statement of cash Flows: Indirect Method_Keeper Cooperation
dental doctorExercise 8: Preparing the Statement of cash Flows: Indirect Method
Keeper Cooperation�s income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow.
Keeper Corporation
Income Statement
For the Year Ended June 30, 2014
Sales $234,000
Cost of goods sold 156,000
Gross Margin $78,000
Operating expenses 45,000
Operating income $33,000
Interest expense 2,800
Income before income taxes $30,200
Income taxes expense 12,300
Net income $17,900
Keeper Corporation
Comparative Balance Sheets
June 30, 2014 and 2013
2014 2013
Assets
Cash $69,900 $12,500
Accounts receivable (net) 21,000 26,000
Inventory 43,400 48,400
Prepaid Expenses 3,200 2,600
Furniture 55,000 60,000
Accumulated depreciation- furniture (9,000) (5,000)
Total Assets: $183,500 $144,500
Liabilities and Stockholders Equity
Accounts payable $13,000 $14,000
Income taxes payable 1,200 1,800
Notes payable (long-term) 37,000 35,000
Common stock, $10 par value 115,000 90,000
Retained earnings 17,300 3,700
Total liabilities and
stockholders equity $183,500 $144,500
Keeper issued a $22,000 note payable for purchase of furniture; sold at carrying value furniture that cost $27,000 with accumulated depreciation of $15,300; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $28,000; issued $25,000 of common stock at par value; and paid dividends of $4,300.
Prepare Keepers statement of cash flows for the year 2014 using the indirect method.
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exercise_8-preparing_the_statement_of_cash_flows-indirect_method_keeper_cooperation.xlsx
