Preparing the statement of cash flows—indirect method The 2012 comparative balance sheet and income statement of Appleton Group, Inc., follow. Appleton had no noncash investing and financing transactions during 2012.
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APPLETON GROUP, INC. |
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2012 |
2011 |
Increase |
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Current assets: |
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Cash and cash equivalents |
$ 9,300 |
$ 15,300 |
$ (6,000) |
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Accounts receivable |
42,000 |
43,200 |
(1,200) |
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Inventories |
97,100 |
93,700 |
3,400 |
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Plant assets: |
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Land |
41,100 |
16,000 |
25,100 |
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Equipment, net |
101,200 |
94,300 |
6,900 |
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Total assets |
$ 290,700 |
$ 262,500 |
$ 28,200 |
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Current liabilities: |
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Accounts payable |
$ 25,600 |
$ 26,600 |
$ (1,000) |
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Accrued liabilities |
24,000 |
22,800 |
1,200 |
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Long term liabilities: |
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Notes payable |
46,000 |
62,000 |
(16,000) |
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Stockholders’ equity: |
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Common stock |
140,300 |
131,400 |
8,900 |
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Retained earnings |
54,800 |
19,700 |
35,100 |
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Total liabilities and stockholders’ equity |
$ 290,700 |
$ 262,500 |
28,200 |
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APPLETON GROUP, INC. Income Statement Year Ended December 31, 2012 |
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Revenues: |
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Sales revenue |
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$ 439,000 |
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Interest revenue |
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11,800 |
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Total revenues |
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$ 450,800 |
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Expenses: |
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Cost of goods sold |
$ 205,500 |
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Salary expense |
76,500 |
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Depreciation expense |
15,500 |
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Other operating expense |
49,500 |
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Interest expense |
24,300 |
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Income tax expense |
16,300 |
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Total expenses |
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387,600 |
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Net income |
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$ 63,200 |
Requirement
1. Prepare the spreadsheet for the 2012 statement of cash flows. Format cash flows from operating activities by the indirect method.