nyota
Oct 14, 2008, 04:27 AM
Comparative financial statements:
Year 2 Year 1
Assets
Cash....................................................$ 8 $ 18
Accounts receivable............................... 355 233
Inventory.............................................. 120 168
Prepaid expenses................................... 12 5
Plant and equipment............................... 612 475
Less accumulated depreciation................ (97) (88)
Long-term invetments............................ 17 22
Total assets.......................................... $1,027 $833
Year 2 Year 1
Liabilities an Stockholders' Equity
Accounts payable...................................$ 321 $225
Accrued liabilities................................... 62 74
Bonds paable........................................ 288 174
Deferred income taxes........................... 45 36
Common stock...................................... 205 254
Retained earnings.................................. 106 70
Total liabilities and stockholders' equity.... $1,027 $833
For Year Ended Dec 31, Year 2
Sales..................................................... $805
Costs of goods sold................................. 502
Gross margin.......................................... 303
Selling and administrative expenses......... 215
Net operating income.............................. 88
Nonoperating items:
Gain on sale of investment..................... $ 7
Loss on sale of equipment...................... (4)
Income before taxes.............................. 91
Net income........................................... 67
During Year 2, the company sold some equipment for $10 that had cst $20 and on which there was accumulated depreciation of $6. In addition, the company sold long-term investments for $12 that had costs $5 when purchased several years ago. Cash dividends totaling $31 were paid during Year 2.
1. Using the indirect method, determine the net cash providd by operating activities for Year 2.
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for Year 2.
Year 2 Year 1
Assets
Cash....................................................$ 8 $ 18
Accounts receivable............................... 355 233
Inventory.............................................. 120 168
Prepaid expenses................................... 12 5
Plant and equipment............................... 612 475
Less accumulated depreciation................ (97) (88)
Long-term invetments............................ 17 22
Total assets.......................................... $1,027 $833
Year 2 Year 1
Liabilities an Stockholders' Equity
Accounts payable...................................$ 321 $225
Accrued liabilities................................... 62 74
Bonds paable........................................ 288 174
Deferred income taxes........................... 45 36
Common stock...................................... 205 254
Retained earnings.................................. 106 70
Total liabilities and stockholders' equity.... $1,027 $833
For Year Ended Dec 31, Year 2
Sales..................................................... $805
Costs of goods sold................................. 502
Gross margin.......................................... 303
Selling and administrative expenses......... 215
Net operating income.............................. 88
Nonoperating items:
Gain on sale of investment..................... $ 7
Loss on sale of equipment...................... (4)
Income before taxes.............................. 91
Net income........................................... 67
During Year 2, the company sold some equipment for $10 that had cst $20 and on which there was accumulated depreciation of $6. In addition, the company sold long-term investments for $12 that had costs $5 when purchased several years ago. Cash dividends totaling $31 were paid during Year 2.
1. Using the indirect method, determine the net cash providd by operating activities for Year 2.
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for Year 2.