Use the spreadsheet provided to complete this assignment. Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all

Use the spreadsheet provided to complete this assignment. Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations.

For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.

The company’s balance sheets and income statement follow.

Additional Information on Year 2011 Transactions:

1. The loss on the cash sale of equipment was $2,100 (details in b).

2. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.

3. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance.

4. Borrowed $6,000 cash by signing a short-term note payable.

5. Paid $45,000 cash to reduce the long-term notes payable.

6. Issued 3,000 shares of common stock for $11 cash per share.

7. Declared and paid cash dividends of $63,000.

Required:

1. Use the attached Excel spreadsheet to prepare a complete statement of cash flows; report its operating activities using the indirect method.

2. Disclose any noncash investing and financing activities in a note.

I have attached the Kite company The company’s balance sheets and income statement in the document named kite company

Attachment 1

Attachment 2

ATTACHMENT PREVIEW

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Use the spreadsheet provided to complete this assignment. Kite Corporation, a merchandiser, recently completed its 
calendar-year 2011 operations.
For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all 
purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other 
Expenses are paid in advance and are initially debited to Prepaid Expenses.
The company’s balance sheets and income statement follow.
Additional Information on Year 2011 Transactions:
1. The loss on the cash sale of equipment was $2,100 (details in b).
2. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.

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3. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $45,000 cash to reduce the long-term notes payable.
6. Issued 3,000 shares of common stock for $11 cash per share.
7. Declared and paid cash dividends of $63,000.
Required:
1. Use the attached Excel spreadsheet to prepare a complete statement of cash flows; report its operating activities using 
the indirect method.
2. Disclose any noncash investing and financing activities in a note.

ATTACHMENT PREVIEW

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(insert company name here)
Statement of Cash Flows
Year Ending
Net Income
$-
ADD
Depreciation Exp
$-
Amortization
$-
Decrease
In
$-
Decrease
In
$-
Increase In
$-
Increase In
$-
Loss on
$-
DEDUCT:
$-
$-
$-
Decrease in
$-
$-
Cash Provided/Used From Operating Activities
$0
Investing
Cash received from
$-
Cash received from
$-
Cash paid for
$-
Cash paid for
$-
Cash Provided/Used From Investing Activities
$0
Financing
Cash received from
$-
Cash received from
$-
Cash paid
for
$-
Cash paid
for
$-
Cash Provided/Used From Financing Activities
$0
Increase/(Decrease) In Cash
$0
Beginning Cash Balance
$0
ENDING Cash Balance
$0
Increase In
Increase In
Decrease in
Gain on

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