(Worksheet Preparation) Below is the comparative balance sheet for Lowenstein Corporation.
|
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
Cash |
$ 16,500 |
$ 24,000 |
|
Short-term investments |
25,000 |
19,000 |
|
Accounts receivable |
43,000 |
45,000 |
|
Allowance for doubtful accounts |
(1,800) |
(2,000) |
|
Prepaid expenses |
4,200 |
2,500 |
|
Inventory |
81,500 |
57,000 |
|
Land |
50,000 |
50,000 |
|
Buildings |
125,000 |
78,500 |
|
Accumulated depreciation—buildings |
(30,000) |
(23,000) |
|
Equipment |
53,000 |
46,000 |
|
Accumulated depreciation—equipment |
(19,000) |
(15,500) |
|
Delivery equipment |
39,000 |
39,000 |
|
Accumulated depreciation—delivery equipment |
(22,000) |
(20,500) |
|
Patents |
15,000 |
–0– |
|
$379,400 |
$300,000 |
|
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
Accounts payable |
$ 26,000 |
$ 16,000 |
|
Short-term notes payable (trade) |
4,000 |
6,000 |
|
Accrued payables |
3,000 |
4,600 |
|
Mortgage payable |
73,000 |
53,400 |
|
Bonds payable |
50,000 |
62,500 |
|
Common stock |
140,000 |
102,000 |
|
Paid-in capital in excess of par—common stock |
10,000 |
4,000 |
|
Retained earnings |
73,400 |
51,500 |
|
$379,400 |
$300,000 |
Dividends in the amount of $10,000 were declared and paid in 2012.
Instructions
From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. The short-term investments are considered available-for-sale, and no unrealized gains or losses have occurred on these securities.