PDA

View Full Version : Need Help on my Statement of Cash Flows Problem


bestaburger0493
Sep 5, 2012, 03:58 PM
Complete a Statement of Cash Flows indirect method for the PT Co. for the year ended 12/31/2011.

PT Co. Balance Sheet 12/31/2011 12/31/2010

Cash $ 1,756 $770
Accounts Receivable $ 480 $385
Inventory $ 372 $ 495
Land $ 200 $ 330
Equipment $2,560 $ 1,760
Accumulated Depre. - Equip. $ (580) $ (220)

Total Assets $ 4,788 $ 3,520

A/P $ 900 $ 660
Bonds Payable $ 1800 $ 1100
Common Stock $ 990 $ 990
Retained Earnings $ 1,098 $ 770

Total Liabilities and Equity $ 4,788 $ 3,520

PT Co. Income Statement year ending 12/31/2011
Sales Rev. $ 9,000
COGS $ (6,000)
=Gross Profit $ 3,000
Other Expenses $ (2,000)
Gain on Sale of Land $ 400
= Net Income $ 1,400

Notes on 2011 Activities:
1. Equipment with a cost of $50 and a Book Value of $30 was sold for cash of $30. Equipment was purchased for cash.
2. Land was sold for cash.
3. Cash dividends were declared and paid.
4. Bonds were issued on 12/31/2011 for cash.

If someone can also solve this and see where I got off on my numbers I believe it has to do with the notes part. But I am not sure help would be appreciated!