Question
3. Prepare the cash flow statement for the following information.(Indirect Method) Balance Sheet($) Jan 1Dec 31 ASSETS: Current Assets: Cash310,000600,000 Marketable Securities1,200,0001,000,000 Accounts Receivable, net290,000330,000
3. Prepare the cash flow statement for the following information.(Indirect Method)
Balance Sheet($)
Jan 1Dec 31
ASSETS:
Current Assets:
Cash310,000600,000
Marketable Securities1,200,0001,000,000
Accounts Receivable, net290,000330,000
Inventory3,000,0004,000,000
Prepaid Expenses 200,000300,000
Total Current Assets5,000,0006,230,000
Total Fixed Assets, net 2,500,0002,000,000
Total Assets 7,500,0008,230,000
LIABILITIES & EQUITIES
Current Liabilities:
Accounts Payable1,500,0001,000,000
Notes Payable1,000,000 1,000,000
Accrued Expenses500,000800,000
Total Current Liabilities3,000,0002,800,000
Total Long-term Liabilities1,000,0001,500,000
Total Liabilities4,000,0004,300,000
Preferred Stock500,000500,000
Common Stock500,000500,000
Capital in Excess of Par1,000,0001,000,000
Retained Earnings1,500,0001,930,000
Total Stockholders Equity3,500,0003,930,000
Total Liabilities and Equity7,500,0008,230,000
Income Statement (for problem 3)
Sales10,000,000
COGS6,000,000
Gross Profit4,000,000
Administrative expenses1,200,000
Depreciation500,000
EBIT2,300,000
Interest Expense500,000
EBT1,800,000
Taxes (40%)720,000
Net Income1,080,000
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Income Tax Fundamentals 2015
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
33rd Edition
9781305177772
