Preparing the direct method statement of cash flows
Rouse Toy Company reported the following comparative balance sheet:
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ROUSE TOY COMPANY Comparative Balance Sheet December 31, 2012 and 2011 |
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|
Assets |
2012 |
2011 |
Liabilities |
2012 |
2011 |
|
Current: |
Current: |
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|
Cash |
$ 17,000 |
$ 11,000 |
Accounts payable |
$ 43,000 |
$ 38,000 |
|
Accounts receivable |
59,000 |
49,000 |
Salary payable |
24,500 |
19,000 |
|
Inventory |
78,000 |
84,000 |
Accrued liabilities |
5,000 |
13,000 |
|
Prepaid expenses |
3,100 |
2,100 |
Long-term notes payable |
60,000 |
70,000 |
|
Long-term investments |
75,000 |
85,000 |
Stockholders’ Equity |
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|
Plant assets, net |
227,000 |
189,000 |
Common stock |
42,000 |
39,000 |
|
Retained earnings |
284,600 |
241,100 |
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|
Total assets |
$459,100 |
$420,100 |
Total liabilities and stockholders’ equity |
$459,100 |
$420,100 |
Requirement
1. Compute the following for Rouse Toy Company:
a. Collections from customers during 2012. Sales totaled $143,000.
b. Payments for inventory during 2012. Cost of goods sold was $80,000.