Assignment due in 6 hours on Statement of Cash Flow Indirect and direct, please view attachments ELNUTT
Assignment due in 6 hours on Statement of Cash Flow
Indirect and direct, please view attachments
ELNUTT
Attachment 1
Attachment 2
ATTACHMENT PREVIEW
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Part 1: Indirect Method
Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based
upon the income statement and the additional information below:
Additional Information:
Increase in Accounts Receivables=$4,000
Increase in Accounts Payables=$16,000
Increase in Income Taxes Payable=$300
Decrease in Prepaid Expenses=$10,000
Decrease in Merchandise Inventory=$14,000
Decrease in Long Term Notes Payable=$20,000
Cash Paid to Purchase Land=$50,000
Cash Paid to Purchase Equipment=$15,000
Cash Paid to Retire Bonds=$25,000
Cash Paid to for Dividends=$10,000
Cash Received from the Sale of common stock=$50,000
Cash at the start of the year=$24,000
Part 2: Direct Method
Using Excel and the below information please prepare the complete statement of cash flows
using the direct method.
Additional Information:
Cash Received from Customers=$80,000
Cash Payments for Merchandise=$10,000
Cash Payments for Operating Expenses=$5,000
Cash payments for Interest=$6,000
Cash Payments for Income Taxes=$3,000
ATTACHMENT PREVIEW
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Country Vista Company
Income Statement
For the Year Ended December 31, 2011
Sales
$248,000
Cost of Goods Sold
$116,000
Gross Profit
$132,000
Operating Expenses
Wages and Salaries Expense
$44,000
Rent Expense
$16,000
Depreciation Expense
$30,000
Other Operating Expenses
$18,000
$108,000
Income from Operations
$24,000
Gain on Sale of Equipment
$26,000
Income before Income Taxes
$50,000
Income Tax Expense
$17,500
Net Income
$32,500
