income

Download and review the income statement in the attachment for the Country Vista Company. You will use the income statement to help you complete Part 1 and Part 2 below.

Part 1: Indirect Method

Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below:

Additional Information:

• Increase in Accounts Receivables=$4,000
• Increase in Accounts Payables=$16,000
• Increase in Income Taxes Payable=$300
• Decrease in Prepaid Expenses=$10,000
• Decrease in Merchandise Inventory=$14,000
• Decrease in Long Term Notes Payable=$20,000
• Cash Paid to Purchase Land=$50,000
• Cash Paid to Purchase Equipment=$15,000
• Cash Paid to Retire Bonds=$25,000
• Cash Paid to for Dividends=$10,000
• Cash Received from the Sale of common stock=$50,000
• Cash at the start of the year=$24,000

Part 2: Direct Method

Using Excel and the below information please prepare the complete statement of cash flows using the direct method.

Additional Information:

• Cash Received from Customers=$80,000
• Cash Payments for Merchandise=$10,000
• Cash Payments for Operating Expenses=$5,000
• Cash payments for Interest=$6,000
• Cash Payments for Income Taxes=$3,000