1.) Prepare a statement of cash flows using the indirect method for the year ending December 31, 2011.
Balance Sheet
|
|
2011 |
2010 |
|
Cash |
$ 18,000 |
$25,000 |
|
Supplies |
10,000 |
12,000 |
|
Accounts receivable (net) |
31,000 |
35,000 |
|
Inventory |
51,000 |
52,000 |
|
Prepaid expenses |
9,000 |
3,000 |
|
Buildings, and equipment |
400,000 |
360,000 |
|
Less: accumulated depreciation |
(100,000) |
(75,000) |
|
Total assets |
$419,000 |
$412,000 |
|
|
|
|
|
Accounts payable |
$18,000 |
$13,000 |
|
Accrued expenses |
10,000 |
8,500 |
|
Note payable, Short Term |
20,000 |
60,000 |
|
Note payable, Long Term |
20,000 |
15,500 |
|
Capital stock |
296,000 |
280,000 |
|
Retained earnings |
55,000 |
35,000 |
|
Total liabilities and equities |
$419,000 |
$412,000 |
Additional data:
One piece of equipment was purchased during the year.
Short term debt was repaid while long term debt was issued.
Dividends were paid during the year.
A condensed income statement for the year is as follows:
|
Sales |
470,000 |
|
Cost of goods sold |
220,000 |
|
Gross profit |
250,000 |
|
Depreciation expense |
25,000 |
|
Operating expenses, other |
138,000 |
|
Operating income |
87,000 |
|
Interest Expense |
(2,000) |
|
Net income |
85,000 |