Preparing a Statement of Cash Flows
The following financial statements for Swale, LTD are provided:
|
Swale Limited Income Statement For the Year Ended December 31, 2000 |
||
|
Revenues: |
||
|
Sales |
$97,800 |
|
|
Interest revenue |
1,300 |
|
|
$99,100 |
||
|
Expenses: |
||
|
Cost of goods sold |
56,500 |
|
|
Salary expense |
19,000 |
|
|
Depreciation expense |
3,000 |
|
|
Interest expense |
1,500 |
|
|
Tax expense |
2,500 |
82,500 |
|
Net Income |
$ 16,600 |
|
|
Swale Limited Balance Sheet December 31 |
||
|
2000 |
1999 |
|
|
Cash |
$35,600 |
$24,000 |
|
Accounts receivable |
5,500 |
3,000 |
|
Inventory |
21,000 |
11,000 |
|
Property, plant, and equipment (net) |
21,500 |
20,000 |
|
Investments |
12,000 |
0 |
|
Total assets |
$95,600 |
$58,000 |
|
Accounts payable |
$5,000 |
$2,000 |
|
Salaries payable |
600 |
500 |
|
Short term debt |
0 |
12,000 |
|
Long term debt |
25,000 |
6,000 |
|
Common stock |
36,000 |
25,100 |
|
Retained earnings |
29,000 |
12,400 |
|
Total liabilities and shareholders’ equity |
$95,600 |
$58,000 |
Required
Prepare a statement of cash flows.