Originally Posted by
deloris723
Condensed financial data of Arma Inc. follow.
ARMA INC.
Comparative Balance Sheets
December 31
Assets
2011
2010
Cash $90,800 $48,400
Accounts receivable 92,800 33,000
Inventories 112,500 102,850
Prepaid expenses 28,400 26,000
Investments 138,000 114,000
Plant assets 270,000 242,500
Accumulated depreciation
(50,000)
(52,000)
Total
$682,500
$514,750
Liabilities and Stockholders' Equity
Accounts payable $112,000 $67,300
Accrued expenses payable 16,500 17,000
Bonds payable 110,000 150,000
Common stock 220,000 175,000
Retained earnings
224,000
105,450
Total
$682,500
$514,750
ARMA INC.
Income Statement
For the Year Ended December 31, 2011
Sales $392,780
Less:
Cost of goods sold $135,460
Operating expenses, excluding depreciation 12,410
Depreciation expense 46,500
Income taxes 27,280
Interest expense 4,730
Loss on sale of plant assets
7,500
233,880
Net income
$158,900
Additional information:
New plant assets costing $85,000 were purchased for cash during the year.
Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
Bonds matured and were paid off at face value for cash.
A cash dividend of $40,350 was declared and paid during the year.
Complete the statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
ARMA INC.
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flows from operating activities
$
Adjustments to reconcile net income to net
cash provided by operating activities
$
Net cash by operating activities
Cash flows from investing activities
Net cash by investing activities
Cash flows from financing activities
Net cash by financing activities
Net in cash
Cash at beginning of period
Cash at end of period
$
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