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1) Prepare a statement of cash flows (SCF) using the Direct Method. 2) Prepare a reconciliation of net income to cash from operations Assets 2014
1) Prepare a statement of cash flows (SCF) using the Direct Method.
2) Prepare a reconciliation of net income to cash from operations
| Assets | 2014 | 2015 |
| Cash | $400 | $900 |
| Accounts Receivable | 1500 | 1400 |
| Inventory | 8200 | 9300 |
| Prepaid Insurance | 1400 | 1100 |
| Equipment | 4600 | 5500 |
| Accumulated Depreciation | (1200) | (2000) |
| Long term Investment in Debt Securities ( held to maturity) | 3500 | 5200 |
| Land | 6000 | 5000 |
| Total Assests | $24400 | $26400 |
| Liabilities and Equity | ||
| Salaries Payable | 900 | 1000 |
| Interest Payable | 500 | 300 |
| Accounts Payable- Merchandise | 1100 | 800 |
| Income Tax Payable | 1600 | 600 |
| Note Payable (long term) | 5300 | 1000 |
| Common Stock | 7500 | 9000 |
| Paid-in capital in excess of par- common stock | 500 | 1000 |
| Retained Earnings | 7000 | 12700 |
| Total Liabilities and Equity | $24,400 | $26,400 |
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