statement of cash flow 241895

On the basis of the following data for Larson Co. for the year ending December 31, 2011 and the preceding year ending December 31,2010 prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. In addition to the balance sheet, assume that:
-Equipment costing $125,000 was purchased for cash.
-Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
-The stock was issued for cash.
-The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

                                         2011         2010
Cash                                  100,000    78,000
Accounts Receivable (net)     78,000    85,000
Inventories                         101,500    90,000
Equipment                          410,000   370,000
Accumulated Depreciation  (150,000) (158,000)
                                        $539,500  $465,500

Accounts Payable(merchandise creditors 58,500         55,000
Cash dividends Payable                            5,000          4,000
Common stock, $10 par                        200,000      170,000
Paid-In capital in excess
of par common stock                              62,000       60,000
Retained earnings                                214,000      176,000
                                                         $539,500    $465,000

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