dec,31 2008/2007


Assets
Cash- 45,800/56,200
accounts receivable- 70,200/75,600
merchandise inventory- 100,500/93,500
prepaid expenses- 4,200/3,000
equipment- 204,700/167,800
accumulated depreciation- equip (53,400)/(41,300)
2008= 372,000 /2007=354,800

liabilities and stockholders equity
accounts payable(merchandise creditors)- 78,200/74,300
mortgage note payable- 0/105,000
common stock, $1 par- 15,000/10,000
paid in capital in excess of par- common stock- 98,800/65,500
2008=372,000/ 2007= 354,800



A. Net income- 81,300
B. depreciation reported on the income statement- 26,100
C. equipment was purchased at cost of 50,900 and fully depreciated
equipment costing 14,000 was discarded, with no salvage realized.
D. the mortgage note payable was not due until 2011, but the terms permitted earlier payment without penalty.
E. 5,000 shares of common stock were issued at $17 for cash.
F. Cash dividends declared and paid & 48,000

instructions:
prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Cash flow from operating act:
Net income 81 300
Depreciation 26 100
Decrease in acc Recceivable 5 400
Increase in prepaid expenses (1 200)
Increase in inventories (7 000)
Increase in Acc Payable 3 900
Net cash flow from operating act 108 500
Cash flows from investing act
Less cash paid for new equipment 50 900*
Net cash flow used for investing act (50 900)
Cash flows from financing act
Cash received from issuing stock 85 000
Dividends declared (48 000)
Less mortgage note payable (105 000)
Net cash flow provided by financing act (68 000)

Decrease in cash (10 400)
Cash at the beginning of the year 56 200
Cash at the end of the year 45 800

* $14000 depreciation was discarded, woth no salvage realized = don't count in the statement

hadinhle, first the thread is old and I don't think the OP is around anymore.

Second, please read our guidelines about homework that is at the top of this forum in read print. Please do not just answer people's homework for them.