q 42 p13 36b barton publication company inc statements of cash flows 500941

Aug 29, 2021 | Uncategorized

Q.42). P13-36B Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770

Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.

Barton Publication Company, Inc.

Balance Sheet

As of March 31, 2010 and 2009

2010

2009

Increase (Decrease)

Current assets :

Cash

$ 55,600

$14.700

$40,900

Accounts receivable

51,400

53,300

(1,900)

Inventories

65,400

59,700

5,700

Prepaid expenses

3,700

5,100

(1,400)

Long-term investment

10,000

6,800

3,200

Equipment, net

71,700

70,200

1,500

Land

35,500

97,000

(61,500)

Total assets

293,300

$306,800

(61,500)

Current liabilities

Note payable, short-term

$43,200

$48,900

$(5,700)

Account payable

4,300

3,500

800

Income tax payable

13,700

15,500

(1,800)

Salary payable

9,200

12,400

(3,200)

Interest payable

8,200

7,400

800

Accrued liabilities

2,900

3,400

(500)

Long-term note payable

48,900

93,100

(44,200)

Common stock

69,600

61,700

7,900

Retained earnings

93,300

60,900

32,400

Total liabilities and equity

$293,300

$306,800

$(13,500)

Selected transaction data for the year ended March 31, 2010, include the following :

  1. Net income, $77,000
  2. Paid long-term note payable with cash, $59,600
  3. Cash payments to employees, $43,000
  4. Loss on sale of land, $9,600
  5. Acquired equipment by issuing long-term note payable, $15,400
  6. Cash payments to suppliers, $147,100
  7. Cash paid for interest, $4,100
  8. Depreciation expense on equipment, $13,900
  9. Paid short-term note payable by issuing common stock, $5,700
  10. Paid cash dividends, $44,600
  11. Received cash for issuance of common stock, $2,200
  12. Cash received form customer, $299,400
  13. Cash paid for income taxes, $12,000
  14. Sold land for cash, $51,900
  15. Interest received (in cash), $1,000
  16. Purchased long-term investment for cash, $3,200

Requirements

  1. Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
  2. Also prepare a supplementary schedule of cash flows from operations using the direct method.