Based on the information provided below for Nash Company prepare a statement of cash flows using the Direct and Indirect methods. Prepare the statements on this worksheet below the data provided. Submit the worksheet provided in Excel. Show all your work. Grading will be roughly based on the accuracy of the statements prepared and the correct presentation of the statements.

NASH COMPANY

COMPARATIVE BALANCE SHEET

AS OF MAY 31

2017

2016

Current assets

Cash

$28,300

$20,100

Accounts receivable

74,800

57,600

Inventory

219,200

249,500

Prepaid expenses

8,900

7,100

Total current assets

331,200

334,300

Plant assets

Plant assets

596,000

505,100

Less: Accumulated depreciationplant assets

150,400

124,300

Net plant assets

445,600

380,800

Total assets

$776,800

$715,100

Current liabilities

Accounts payable

$122,200

$114,700

Salaries and wages payable

47,700

72,100

Interest payable

26,700

24,700

Total current liabilities

196,600

211,500

Long-term debt

Bonds payable

70,000

100,000

Total liabilities

266,600

311,500

Stockholders equity

Common stock, $10 par

370,000

280,000

Retained earnings

140,200

123,600

Total stockholders equity

510,200

403,600

Total liabilities and stockholders equity

$776,800

$715,100

NASH COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED MAY 31, 2017

Sales revenue

$1,255,000

Cost of goods sold

715,500

Gross profit

539,500

Expenses

Salaries and wages expense

251,700

Interest expense

74,300

Depreciation expense

26,100

Other expenses

8,100

Total expenses

360,200

Operating income

179,300

Income tax expense

43,200

Net income

$136,100

The following is additional information concerning Nashs transactions during the year ended May 31, 2017.

1

All sales during the year were made on account.

2

All merchandise was purchased on account, comprising the total accounts payable account.

3

Plant assets costing $90,900 were purchased by paying $21,900 in cash and issuing 6,900 shares of stock.

4

The other expenses are related to prepaid items.

5

All income taxes incurred during the year were paid during the year.

6

In order to supplement its cash, Nash issued 2,100 shares of common stock at par value.

7. Cash dividends of $119,500 were declared and paid at the end of the fiscal year.

Please use the statements below for both Indirect and Direct Method:

Direct Method Cash Flow Statement				Debit	Credit
NASH COMPANY
Cash Flows from operating activites
From Customers
From investment revenue
Cash Outflows
To suppliers of goods
To employees
For interest
For insurance
For income taxes
Net cash flows from operating activities
Cash flows from investing activities
Purchase of land
Purcahse of short-term investment
Sale of land
Sale of equipment
Net cash flows from investing activities
Cash flows from financing activities
Sale of common shares
Retirement of bonds payable
Payment of cash dividends
Net cash flows from financing activities
Cash balance, January 1
Cash balance, December 31
Indirect Method Cash Flow Statement				Debit	Credit
NASH COMPANY
Net Income
Adjustments for non cash effects
Gain on sale of land
Depreciation expense
Loss on sale of equipment
Changes in operating assets and liabilities
Increase in accounts recievable
Decrease in inventory
Increase in accounts payable
Increase in salaries payable
Discount on bonds payable
Decrease in prepaid insurance
Decrease in income tax payable
Net cash flows from operating activities
Cash flows from investing activities
Purchase of land
Purchase of short term investment
Sale of equipment
Net cash flows from investing activities
Cash flows from financing activities
Sale of common shares
Retirement of bonds payable
Payment of cash dividends
Net cash flows from financing activities
Cash Balance, January 1
Cash Balance, December 31