Preparing a Statement of Cash Flow (Indirect Format) Reuben Corporation has completed its comparative balance sheet and income statement at year end 2004.
|
Comparative Balance Sheet |
2004 |
2003 |
Income Statement for 2004 |
|
|
Cash |
$4,400 |
$3,550 |
Sales revenue |
$355,000 |
|
Accounts receivable |
4,100 |
5,300 |
Cost of goods sold |
241,400 |
|
Inventory |
5,700 |
4,100 |
Gross profit |
$113,600 |
|
Prepaid advertising |
900 |
1,200 |
Operating expenses: |
|
|
Buildings and furnishings |
20,000 |
20,000 |
Advertising |
8,300 |
|
Accumulated depreciation |
6,000 |
5,000 |
Depreciation |
1,000 |
|
Land |
14,000 |
10,000 |
Insurance |
3,500 |
|
Total assets |
$43,100 |
$39,150 |
Rent |
31,200 |
|
Rent payable |
$2,800 |
$2,600 |
Wages |
57,380 |
|
Taxes payable |
1,600 |
2,000 |
Operating income |
12,220 |
|
Wages payable |
2,000 |
900 |
Interest expense |
1,450 |
|
Loan payable, long term |
14,000 |
22,250 |
Income before tax |
10,770 |
|
Common stock |
16,000 |
10,000 |
Taxes |
3,770 |
|
Retained earnings |
6,700 |
1,400 |
Net income |
$7,000 |
|
Total liabilities and equity |
$43,100 |
$39,150 |
Additional information:
1. A payment of $8,250 was made on the loan principal during the year.
2. Just before year end, a dividend was distributed to stockholders.
3. A parcel of land was acquired early in the year.
4. New shares of common stock were sold during the year.
Required Prepare a statement of cash flows in good form using the indirect format.