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-   -   Preparing a complete statement for cash flows using indirect method NEED ASAP! (https://www.askmehelpdesk.com/showthread.php?t=322751)

  • Feb 27, 2009, 09:44 AM
    Kimbeaux
    Preparing a complete statement for cash flows using indirect method NEED ASAP!
    Ellen Corporation
    Balance Sheets
    At December 31
    2008 2007
    Assets:
    Cash
    $24640 $23040
    Accounts receivable
    32180 29400
    Merchandise inventory
    73125 61710
    Long-term investments
    55900 56400
    Equipment
    175500 145500
    Accumulated depreciation
    (33,550 ) (31,200 )
    Total assets
    $327795 $284850

    Liabilities:
    Accounts payable
    $65000 $40380
    Income taxes payable
    10725 10200
    Bonds payable
    48750 66000
    Total liabilities
    $124475 $116580

    Equity:
    Common stock
    117000 96000
    Contributed capital in excess of par
    13000 9000
    Retained earnings
    73320 63270
    Total equity
    $203320 $168270
    Total liabilities and equity
    $327795 $284850

    Ellen Corporation
    Income Statement
    For Year Ended December 31, 2008

    Sales
    $240000
    Cost of goods sold $80900
    Depreciation expense 29400
    Other operating expenses 48000
    Interest expense 2000
    (160,300 )
    Other gains (losses):
    Loss on sale of equipment
    (8,400 )
    Income before taxes
    71300
    Income taxes expense
    27650
    Net income
    $43650

    Additional information:
    (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
    (2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
    (3) New equipment was purchased for $67,550 cash.
    (4) Cash dividends of $33,600 were paid.
    (5) Additional shares of stock were issued for cash.

    Prepare a complete statement of cash flows for calendar-year 2008 using the indirect method.

    Please help! Thank you so much :D
  • Feb 27, 2009, 09:51 AM
    ScottGem

    Please review the guidelines on asking for help with homework that can be found here:



    Ask Me Help Desk - Announcements in Forum : Arts & Literature

    Also please do not post the same uestion multiple times
  • Mar 1, 2009, 12:06 PM
    pready

    Use a worksheet and do the work yourself, then if you have a question we will try to help you. Also use your accounting textbook to figure out how do your homework.

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