On the basis of the following data for Teller Co. for 2006 and the preceding year ended December 31, 2005, prepare a statement of cash flows in excel. Use the indirect method of reporting cash flows from operating activities.
Additional Information
1) Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000;
2) The stock was issued for cash;
3) The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
Balance Sheets
|
Year |
Year |
||
|
2006 |
2005 |
||
|
Cash |
$100,000 |
$ 78,000 |
|
|
Accounts receivable (net) |
78,000 |
85,000 |
|
|
Inventories |
101,500 |
90,000 |
|
|
Equipment |
410,000 |
370,000 |
|
|
Accumulated depreciation |
(150,000) |
(158,000) |
|
|
$539,500 |
$465,000 |
||
|
======== |
======== |
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|
Accounts payable (merchandise creditors) |
$ 58,500 |
$ 55,000 |
|
|
Cash dividends payable |
5,000 |
4,000 |
|
|
Common stock, $10 par |
200,000 |
170,000 |
|
|
Paid-in capital in excess of par–common stock |
62,000 |
60,000 |
|
|
Retained earnings |
214,000 |
176,000 |
|
|
$539,500 |
$465,000 |
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|
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Attachments:
Cash-Flow-Pro….docx