Accounting
fai9sal007
CashFlowABCCo20042005NOansw.docx7. Prepare a Cash Flow Statement
|
Balance Sheet: |
2004 |
2005 |
|
|
Current Assets |
|
|
Incr (Decr) |
|
Cash |
$36,000 |
$49,500 |
$13,500 |
|
Accounts Receivable |
- |
31,875 |
$31,875 |
|
Inventories |
34,200 |
28,125 |
($6,075) |
|
Total current assets |
70,200 |
109,500 |
$39,300 |
|
Noncurrent Assets |
|
|
$0 |
|
Land |
10,800 |
10,800 |
$0 |
|
Buildings |
72,000 |
116,250 |
$44,250 |
|
Equipment |
43,200 |
50,875 |
$7,675 |
|
Patent |
3,600 |
3,600 |
$0 |
|
Accumulated depreciation |
(7,200) |
(9,375) |
($2,175) |
|
Total noncurrent assets |
122,400 |
172,150 |
$49,750 |
|
Total Assets |
192,600 |
281,650 |
$89,050 |
|
|
|
|
$0 |
|
Current Liabilities |
|
|
$0 |
|
Accounts payable to suppliers |
$36,000 |
$18,750 |
($17,250) |
|
Income taxes payable |
- |
7,500 |
$7,500 |
|
Total current liabilities |
36,000 |
26,250 |
($9,750) |
|
Noncurrent Liabilities |
|
|
$0 |
|
Long term debt |
72,000 |
93,750 |
$21,750 |
|
Total liabilities |
108,000 |
120,000 |
$12,000 |
|
Shareholders’ Equity |
|
|
$0 |
|
Common Stock |
84,600 |
122,625 |
$38,025 |
|
Retained Earnings |
- |
39,025 |
$39,025 |
|
Total shareholders’ equity |
84,600 |
161,650 |
$77,050 |
|
Total Liabilities and Shareholders Equity |
$192,600 |
281,650 |
$89,050 |
|
|
|
|
|
|
|
|
|
|
|
Income statement: 2005 |
|
|
|
|
Sales |
|
$ 125,625 |
|
|
Cost of goods sold |
|
(35,625) |
|
|
Depreciation expenses |
|
(2,175) |
|
|
Net interest expenses |
|
(1,500) |
|
|
Other expenses |
|
(3,300) |
|
|
Income before taxes |
|
83,025 |
|
|
Provision for income taxes |
|
(30,000) |
|
|
Net income |
|
53,025 |
|
|
Dividends paid |
|
14,000 |
|
|
Additions to retained earnings |
|
$39,025 |
|
Prepare a statement of Cash Flow
7.
Prepare a Cash Flow Statement
Balance Sheet:
2004
2005
Current Assets
Incr
(Decr)
Cash
$36,000
$49,500
$13,500
Accounts Receivable
-
31,875
$31,875
Inventories
34,200
28,125
($6,075)
Total current
assets
70,200
109,500
$39,300
Noncurrent Assets
$0
Land
10,800
10,800
$0
Buildings
72,000
116,250
$44,250
Equipment
43,200
50,875
$7,675
Patent
3,600
3,600
$0
Accumulated depreciation
(7,200)
(9,375)
($2,175)
Total noncurrent assets
122,400
172,150
$49,750
Total Assets
192,600
281,650
$89,050
$0
Current Liabilities
$0
Accounts payable to suppliers
$36,000
$18,750
($17,250)
Income taxes payable
-
7,500
$7,500
Total current liabilities
36,000
26,250
($9,750)
Noncurrent Liabilities
$0
Long term debt
72,000
93,750
$21,750
Total liabilities
108,000
120,000
$12,000
Shareholders’ Equity
$0
Common Stock
84,600
122,625
$38,025
Retained Earnings
-
39,025
$39,025
Total shareholders’ equity
84,600
161,650
$77,050
Total Liabilities and Shareholders Equity
$192,600
281,650
$89,050
