question archive Complete the Statement of Cash Flow below using the indirect method
Complete the Statement of Cash Flow below using the indirect method
Subject:AccountingPrice: Bought3
Complete the Statement of Cash Flow below using the indirect method.
Statement of Cash Flows for the Year Ended December 31, 2008
Net income
Adjustments to reconcile Net Income
Operating Activities
Credit card receivables
Accounts receivable
Inventory
Marketable securities
Prepaid expenses
Accounts payable
Accrued expenses payable
Income taxes payable
Current mortgage payable
Depreciation, building
Depreciation, furniture and equipment
Net adjustments to reconcile Net Income
Net cash flow, operating activities
Investing Activities
Purchased furniture and equipment
Net cash flow, investing activities
Financing Activities
Reduced long-term mortgage
Cash dividends paid
Net cash flow, financing activities
Net cash flow increase
Cash balance, December 31, 2007
Cash balance, December 31, 2008
Balance Sheet
2007
2008
Assets
Current Assets
Cash
$4,100
$5,200
Credit card receivables
4,700
5,500
Accounts receivable
1,200
700
Inventory
3,000
3,600
Marketable securities
8,000
7,000
Prepaid expenses
1,200
1,500
Total Current Assets
$22,200
$23,500
Property, Plant & Equipment
Land
$30,000
$30,000
Building
150,000
150,000
less: accum. Depr, building
(41,900)
(50,200)
Furniture & equipment
22,700
25,400
less: accum. Depr, furniture & equip.
(15,400)
(19,100)
Total Property, Plant & Equipment
$145,400
$136,100
Total Assets
$167,600
$159,600
Liabilities & Stockholders' Equity
Current Liabilities
Account payable
$6,900
$7,000
Accrued expenses payable
1,400
1,700
Income taxes payable
2,000
1,500
Current portion of mortgage payable
11,500
10,400
Total Current Liabilities
$21,800
$20,600
Long-term Liabilities
Long-term mortgage payable
100,000
89,600
Total Liabilities
$121,800
$110,200
Stockholders' Equity
Capital stock, common
23,000
23,000
Retained earnings
22,800
26,400
Total Stockholders' Equity
$45,800
$49,400
Total Liabilities & Stockholders' Equity
$167,600
$159,600
Income Statement for Year Ended December 31, 2008
Sales revenue
$204,900
Operating costs
(173,800)
EBITDA
31,100
Depreciation, building
(8,300)
Depreciation, furniture and equipment
(3,700)
EBIT
$19,100
Interest
(10,800)
Operating income
$8,300
Income tax
(1,500)
Net Income
$6,800
Statement of Retained Earnings
For Year Ended December 31, 2008
Retained earnings, Dec. 31, 2007
$22,800
Add: Net income for year 2008
6,800
Subtotal
$29,600
Deduct: Dividends paid in 2008
(3,200)
Retained earnings, Dec. 31, 2008
$26,400
