| Problems: | | | | |
| Financial data of Fancy Footwork Company for 2013 and 2012 are presented below. |
| | | | |
| FANCY FOOTWORK COMPANY | |
| COMPARATIVE BALANCE SHEET | |
| AS OF DECEMBER 31, 2013 AND 2012 | |
| | | | |
| | 2013 | 2,012 | |
| Cash | $260,000 | 230,000 | ($30,000) |
| Receivables | $156,000 | 120,000 | ($36,000) |
| Inventory | $180,000 | 220,000 | $40,000 |
| Plant assets | $160,000 | 135,000 | ($25,000) |
| Accumulated depreciation | ($80,000) | (76,000) | $4,000 |
| Long-term investments (held-to-maturity) | $80,000 | 93,000 | $13,000 |
| | $756,000 | 722,000 | |
| | | | |
| Accounts payable | $135,000 | 122,000 | 13,000 |
| Accrued liabilities | $30,000 | 33,100 | (3,100) |
| Bonds payable | $135,000 | 166,000 | (31,000) |
| Common stock | $180,000 | 165,000 | 15,000 |
| Retained earnings | $276,000 | 235,900 | 40,100 |
| | $756,000 | 722,000 | |
| | | | |
| | | | |
| FANCY FOOTWORK COMPANY | |
| INCOME STATEMENT | |
| For the year ended Dec 31, 2013 | |
| Sales | | 750000 | |
| Cost of Goods Sold | | 530000 | |
| Gross Margin | | 220000 | |
| Selling and administrative expenses | 106000 | |
| Income from Operations | | 114000 | |
| Other revenues and gains | | | |
| Gain on sale of investments | | 7000 | |
| Income before tax | | 121000 | |
| Income tax expense | | 48400 | |
| Net Income | | 72600 | |
| | | | |
| | | | |
| Additional information: | | | |
| During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500. | |
| | | | |
| Required: | | | |
| A) Prepare a statement of cash flows using the indirect method | |
| B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) | |
PROF Kay
12 years ago
fancy.xlsx
0
