# 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:
Question

*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

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

Tutorials for this Question
1. ## Solution: VANCO COMPANY_Cash flow statement

Tutorial # 00003530 Posted By: ACCOUNTS_GURU Posted on: 11/19/2013 04:29 AM
Puchased By: 2
Tutorial Preview
comparative balance sheets for Vanco ...
Attachments
VANCO_COMPANY_Cash_flow_statement.xlsx (10.18 KB)

Great! We have found the solution of this question!