Monahan Manufacturing, Inc.: balance sheets for December 31, 2011 and 2012 (in thousands of dollars)
|
December 31 |
||
|
2011 |
2012 |
|
|
ASSETS |
||
|
Current Assets |
||
|
Cash |
$1,790 |
$1,620 |
|
Accounts Receivables |
4,730 |
5,260 |
|
Inventories |
5,020 |
6,040 |
|
Total Current Assets |
$11,540 |
$12,920 |
|
Noncurrent Assets |
||
|
Land |
$2,970 |
$3,150 |
|
Buildings and Equipment |
43,390 |
47,730 |
|
Accumulated Depreciation |
19,870 |
21,820 |
|
Total Noncurrent Assets |
$26,490 |
$29,060 |
|
Total Assets |
$38,030 |
$41,980 |
|
LIABILITIES and shareholders EQUITY |
||
|
Current Liablities |
||
|
Accounts Payable |
$2,060 |
$2,790 |
|
Taxes Payable |
1,370 |
1,450 |
|
Other Short-term Payables |
2,940 |
3,630 |
|
Total Current Liabilities |
$6,370 |
$7,870 |
|
Noncurrent Liabilities |
||
|
Long-term Loans |
$9,920 |
$9,670 |
|
shareholders Equity |
||
|
Common Stock |
$8,360 |
$8,520 |
|
Retained Earnings |
13,380 |
15,920 |
|
Total shareholders Equity |
$21,740 |
$24,440 |
|
Total Liabilities and shareholders Equity |
$38,030 |
$41,980 |
- Net income for 2012 was $2840.
- Dividends declared and paid were $300.
- Depreciation expense on buildings and machinery was $2550 for the year.
- The firm sold for $125 machinery originally costing $750 and accumulated depreciation of $600.
- The firm retired bonds during the year at their book value.
Required
Prepare a statement of cash flows for Monahan Manufacturing for 2012 using the indirect method to compute cash flow from operations. Comment on the pattern of cash flows from operating, investing, and financing activities.