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4) Condensed financial data for Zimmer Corporation are given below. ZIMMER CORPORATION Comparative Balance Sheet December 31 Assets 2002 2001 Cash Accounts receivable $
4) Condensed financial data for Zimmer Corporation are given below. ZIMMER CORPORATION Comparative Balance Sheet December 31 Assets 2002 2001 Cash Accounts receivable $ 58,000 $ 20,000 34,000 27,000 Inventory Land Equipment Accumulated amortization 105,000 115,000 720,000 650,000 508,000 458,000 (45,000) (20,000) Total assets $1.380.000 $1.250.000 Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable $ 55,000 18,000 $ 12,000 24,000 Bonds payable 575,000 575,000 Common shares 674,000 604,000 Retained earnings Total liabilities and shareholders' equity 58,000 $1.380.000 35,000 $1.250.000 ZIMMER CORPORATION Income Statement Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before income taxes Income tax expense Net income Additional information for 2002: For the Year Ended December 31, 2002 $290,000 110,000 $180,000 $90,000 50,000 140,000 40,000 12,000 $ 28,000 [10] 1. A cash dividend of $5,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common shares. 4. Operating expenses include amortization expense. 5. Accounts payable pertain to purchases of merchandise. 6. Accrued expenses payable pertain to operating expenses exclusive of amortization. Prepare a cash flow statement for 2002 using either the indirect or the direct method. You may create a spreadsheet file for this.
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