Country Vista Company_Statement of cash flows
Download and review the income statement for the Country Vista Company. You will use the income statement to help you complete Part 1 and Part 2 below.
Country Vista Income Statement
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Country Vista Company |
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Income Statement |
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For the Year Ended December 31, 2011 |
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Sales |
$2,48,000 |
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Cost of Goods Sold |
$1,16,000 |
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Gross Profit |
$1,32,000 |
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Operating Expenses |
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Wages and Salaries Expense |
$44,000 |
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Rent Expense |
$16,000 |
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Depreciation Expense |
$30,000 |
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Other Operating Expenses |
$18,000 |
$1,08,000 |
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Income from Operations |
$24,000 |
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Gain on Sale of Equipment |
$26,000 |
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Income before Income Taxes |
$50,000 |
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Income Tax Expense |
$17,500 |
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Net Income |
$32,500 |
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Part 1: Indirect Method
Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below:
Additional Information:
Increase in Accounts Receivables=$4,000
Increase in Accounts Payables=$16,000
Increase in Income Taxes Payable=$300
Decrease in Prepaid Expenses=$10,000
Decrease in Merchandise Inventory=$14,000
Decrease in Long Term Notes Payable=$20,000
Cash Paid to Purchase Land=$50,000
Cash Paid to Purchase Equipment=$15,000
Cash Paid to Retire Bonds=$25,000
Cash Paid to for Dividends=$10,000
Cash Received from the Sale of common stock=$50,000
Cash at the start of the year=$24,000
Part 2: Direct Method
Using Excel and the below information please prepare the complete statement of cash flows using the direct method.
Additional Information:
Cash Received from Customers=$80,000
Cash Payments for Merchandise=$10,000
Cash Payments for Operating Expenses=$5,000
Cash payments for Interest=$6,000
Cash Payments for Income Taxes=$3,000
Attachments:
vista_company….docx