Preparing the statement of cash flows—indirect method The 2012 comparative balance sheet and income statement of Attleboro Group, Inc. follow. Attleboro had no noncash investing and financing transactions during 2012.
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ATTLEBORO GROUP, INC. |
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Comparative Balance Sheet |
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December 31, 2012 and 2011 |
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Increase |
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2012 |
2011 |
(Decrease) |
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Current assets: |
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Cash and cash equivalents |
$ 11,800 |
$15,200 |
$ (3,400) |
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Accounts receivable |
42,200 |
43,900 |
(1,700) |
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Inventories |
96,800 |
93,500 |
3,300 |
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Plant assets: |
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Land |
39,800 |
14,000 |
25,800 |
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Equipment, net |
101,100 |
93,800 |
7,300 |
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Total assets |
$ 291,700 |
$ 260,400 |
$31,300 |
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Current liabilities: |
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Accounts payable |
$ 25,100 |
$26,300 |
$ (1,200) |
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Accrued liabilities |
24,200 |
22,500 |
1,700 |
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Long term liabilities: |
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Notes payable |
51,000 |
64,000 |
(13,000) |
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Stockholders’ equity: |
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Common stock |
136,600 |
128,300 |
8,300 |
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Retained earnings
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19,300
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35,500
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Total liabilities and stockholders’ equity
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$ 291,700
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$ 260,400
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$ 31,300
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ATTLEBORO GROUP, INC. Income Statement Year Ended December 31, 2012 |
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Revenues: |
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Sales revenue |
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$ 441,000 |
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Interest revenue |
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11,300 |
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Total revenues |
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$ 452,300 |
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Expenses: |
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Cost of goods sold |
$ 205,300 |
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Salary expense |
76,500 |
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Depreciation expense |
15,100 |
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Other operating expense |
49,600 |
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Interest expense |
24,700 |
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Income tax expense |
16,700 |
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Total expenses |
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387,900 |
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Net income |
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$ 64,400 |
Requirement
1. Prepare the spreadsheet for the 2012 statement of cash flows. Format cash flows from operating activities by the indirect method.