ABC Corp. Comparative Balance Sheet December 31,2003 Assets Current Assets ABC Corp. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Cash received from customers Cash paid for merchandise Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 ABC Corp. Income Statement For the Year Ended December 31, 2003 Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Other Expenses $42,000$350,000 Total operating expenses ($392,000) Other gains (losses) Loss on Sale of Equipment ($2.500) Income before taxes $640,500 Income taxes ($23,500) Net Income $617,000 Statement of Cash Flows Direct Method + Decrease in AR Cash received from customers= - Increase in AVR + Increase in Merchandise + Decrease in APP Cash paid for merchandise= - Decrease in Merchandise - Increase in AP Cash paid for other operating expenses= Other Expenses + Increase in Prepaid Decrease in Accruals - Decrease in Prepaid - Increase in Accruals Cash paid for interest = + Decrease in Interest Payable - Increase in Interest Payable + Decrease in Taxes Payable Cash paid for taxes= Tax Expense - Increase in Taxes Payable ABC Corp. Comparative Balance Sheet December 31,2003 Assets Current Assets ABC Corp. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Cash received from customers Cash paid for merchandise Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 ABC Corp. Income Statement For the Year Ended December 31, 2003 Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Other Expenses $42,000$350,000 Total operating expenses ($392,000) Other gains (losses) Loss on Sale of Equipment ($2.500) Income before taxes $640,500 Income taxes ($23,500) Net Income $617,000 Statement of Cash Flows Direct Method + Decrease in AR Cash received from customers= - Increase in AVR + Increase in Merchandise + Decrease in APP Cash paid for merchandise= - Decrease in Merchandise - Increase in AP Cash paid for other operating expenses= Other Expenses + Increase in Prepaid Decrease in Accruals - Decrease in Prepaid - Increase in Accruals Cash paid for interest = + Decrease in Interest Payable - Increase in Interest Payable + Decrease in Taxes Payable Cash paid for taxes= Tax Expense - Increase in Taxes Payable
