Prepare a statement of cash flows for the year ending in December 31,2012 using the indirect method.
ALLEN COMPANY
Comparative Balance Sheet
Assets Dec.31, 2012 Dec.31,2011
Cash $28,000 $13,000
A/R 18,000 14,000
Prepaid Expenses 7,000 9,000
Inventory 25,000 15,000
Long Term Investments 16,000 18,000
Equipment 60,000 30,000
Accumulated DEprec. Equip (18,000) (14,000)
Total Assets $120,000 $85,000
Liabilities & Stock Holders Equity
A/P 25,000 7,000
Bonds Payable 37,000 45,000
Common Stock 40,000 23,000
Retained Earnings 18,000 10,000
Total Liabilities & Stockholders Equity $116,000 $85,000
Additional Info
1. Net Income for year ending Dec.31,2012 was $20,000
2. Cash dividends of $12,000 were declared and paid during the year.
3. Long term investments that had a book value for $18,000 were sold for $16,000.
4. Sales for 2012 are $120,000