Smith's Statement -The company reported net income for 2013 of $80,000.
Question # 00028849
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Updated on: 10/21/2014 07:00 AM Due on: 02/28/2015
The company reported net income for 2013 of $80,000. No property, plant & equipment was disposed of during the year. Smith paid $32,000 in cash dividends during 2013. Smith uses the indirect method to prepare the statement of cash flows.
Required: Prepare and explain Smith's Statement of Cash Flows for 2013
Account 2013 2012
Cash $ 60,000 $ 56,000
Accounts Receivable 96,000 100,000
Inventory 316,000 312,000
Prepaid Insurance 20,000 16,000
Property, Plant & Equipment 140,000 120,000
Accumulated Depreciation (28,000) (20,000)
Total $ 604,000 $ 584,000
Accounts Payable $ 28,000 $ 36,000
Bonds Payable 180,000 240,000
Common Stock 280,000 240,000
Retained Earnings 116,000 68,000
Total $ 604,000 $ 584,000
Required: Prepare and explain Smith's Statement of Cash Flows for 2013
Account 2013 2012
Cash $ 60,000 $ 56,000
Accounts Receivable 96,000 100,000
Inventory 316,000 312,000
Prepaid Insurance 20,000 16,000
Property, Plant & Equipment 140,000 120,000
Accumulated Depreciation (28,000) (20,000)
Total $ 604,000 $ 584,000
Accounts Payable $ 28,000 $ 36,000
Bonds Payable 180,000 240,000
Common Stock 280,000 240,000
Retained Earnings 116,000 68,000
Total $ 604,000 $ 584,000
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Rating:
/5
Solution: Smith's Statement-The company reported net income for 2013 of $80,000.