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ALAN Company Comparative Balance Sheets FYE 12/31 Increase Assets Cash Accounts receivable Inventory Equipment Less: Accum depr- equipmt Total 2014 50,000 31,000 44,000 2013 (Decrease)
ALAN Company Comparative Balance Sheets FYE 12/31 Increase Assets Cash Accounts receivable Inventory Equipment Less: Accum depr- equipmt Total 2014 50,000 31,000 44,000 2013 (Decrease) 44,000 33,000 33,000 80,000 (36,000) 86,000 44,000 (28,000 58,000 $169,000 $168,000 Liabilities and Stockholders Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 36,000 32,000 25,000 32,000 44,000 $169,000 45,000 38,000 15,000 32,000 38,000 $168,000 Income Statement FYE 12/31/2014 $305,000 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 215,000 90,000 44,000 46,000 9,000 37,000 12,000 $25,000 Additional data 1. Dividends of $19,000 were declared and paid 2. During the year equipment was sold for $12,000 cash. This equipment cost $16,000 3. All depreciation expense, $12,000, is in the operating expenses. 4. All sales and purchases are on account. 5. Additional equipment was purchased for $10,000 cash. Further analysis reveals the following 1. Accounts payable pertains to merchandise creditors 2. All operating expenses except for depreciation are paid in cash Complete the cash flow for ALAN Company using the Direct Method Statement of Cash Flows FYE 12/31/2014 Cash Flows from operating activities Net cash provided by (used by) operating activities Cash Flows from investing activities Net cash provided by (used by) investing activities Cash flows from financing activities Net cash provided by (used by financing activities increase (decrease) in cash Cash at beginning of year Cash at end of year Net Computations (1) Cash receipts from customers Cash receipts from customers (2) Cash payments to suppliers Cash payments to suppliers (3) Cash payments for income taxes Cash payments for income taxes
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