Use the Linderman Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense,
Question:
Use the Linderman Garden Supply, Inc., data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items.
Requirements
1. Prepare the 2018 statement of cash flows using the direct method.
2. How will what you learned in this problem help you evaluate an investment in Linderman Garden Supply, Inc.?
Transcribed Image Text:
Linderman Garden Supply, Inc. Comparative Balance Sheet December 31, 2018 and 2017 INCREASE (DECREASE) 2018 2017 Current Assets: $ 5,300 25,100 91,500 $ 6,500 $ (1,200) (1,400) 1,800 Cash and Cash Equivalents Accounts Receivable 26,500 89,700 Inventory Fixed Assets: Land 61,100 28,600 89,700 54,700 Equipment, Net Total Assets 5,700 49,000 $232,800 $ 33,500 $266,300 Current Liabilities: $ 30,900 $ 35,100 | $ (4,200) 28,400 2,200 Accounts Payable Accrued Liabilities 30,600 Long-Term Liabilities: Notes Payable Stockholders' Equity: 73,000 99,000 (26,000) Common Stock 88,500 43,300 64,600 23,900 Retained Earnings Total Liabilities and Stockholders' Equity 37,600 5,700 $232,800 $ 33,500 $266,300 Linderman Garden Supply, Inc. Income Statement Year Ended December 31, 2018 Revenues: Sales Revenue $216,000 Interest Revenue 8,300 Total Revenues $224,300 Expenses: Cost of Goods Sold $ 71,000 Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses 27,300 4,700 10,200 11,900 29,800 154,900 $ 69,400 Net Income
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