VANCO COMPANY_Cash flow statement

Question # 00003719 Posted By: ACCOUNTS_GURU Updated on: 11/19/2013 04:28 AM Due on: 12/31/2013
Subject Accounting Topic Accounting Tutorials:
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*Problem 12-11A

The comparative balance sheets for Vanco Company as of December 31 are presented below.

VANCO COMPANY

Comparative Balance Sheets

December 31

Assets 2012 2011

Cash $ 99,688 $ 65,970

Accounts receivable 73,300 85,028

Inventory 222,026 208,172

Prepaid expenses 22,400 30,786

Land 212,570 190,580

Equipment 329,850 227,230

Accumulated depreciation—equipment (65,970 ) (51,310 )

Buildings 293,200 293,200

Accumulated depreciation—buildings (87,960 ) (58,640 )

Total $1,099,104 $991,016

Liabilities and Stockholders’ Equity

Accounts payable $ 65,574 $ 52,776

Bonds payable 439,800 439,800

Common stock, $1 par 293,200 234,560

Retained earnings 300,530 263,880

Total $1,099,104 $991,016

Additional information:

1. Operating expenses include depreciation expense of $61,572.

2. Land was sold for cash at book value.

3. Cash dividends of $17,592 were paid.

4. Net income for 2012 was $54,242.

5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of

$14,660 was sold for $11,728 cash.

6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.

Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (Show

amounts that decrease cash flow with either a - sign e.g. -15,0

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Tutorials for this Question
  1. Tutorial # 00003530 Posted By: ACCOUNTS_GURU Posted on: 11/19/2013 04:29 AM
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    comparative balance sheets for Vanco ...
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    VANCO_COMPANY_Cash_flow_statement.xlsx (10.18 KB)

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