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

Country Vista Company

Income Statement

For the Year Ended December 31, 2011



Cost of Goods Sold


Gross Profit


Operating Expenses

Wages and Salaries Expense


Rent Expense


Depreciation Expense


Other Operating Expenses



Income from Operations


Gain on Sale of Equipment


Income before Income Taxes


Income Tax Expense


Net Income


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