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make a solution by constructing the Cash flow statement in both ways (direct and indirect) using the balance sheet and income statement provided below and
make a solution by constructing the Cash flow statement in both ways (direct and indirect) using the balance sheet and income statement provided below and here more information to consider:
1) consider the dividend payment = (1,522,000)
2) Depreciation is zero since there is no information given to the Depreciation and accumulated depreciation.
| income statement | |||
| Period ending | 31 Dec 13 | 31 Dec 12 | 31 Dec 11 |
| Total revenue | 30,871,000 | 29,904,000 | 29,611,000 |
| Cost of revenue | 16,106,000 | 15,685,000 | 15,693,000 |
| Gross profit | 14,765,000 | 14,219,000 | 13,918,000 |
| Operating expense | |||
| Research and development | 1,715,000 | 1,634,000 | 1,570,000 |
| Selling, general, and administrative | 6,384,000 | 6,102,000 | 6,170,000 |
| Nonrecurring | |||
| Others | |||
| Operating income | 6,666,000 | 6,483,000 | 6,178,000 |
| Total other income/expenses | 41,000 | 39,000 | 39,000 |
| EBIT | 6,707,000 | 6,522,000 | 6,217,000 |
| Interest expense | 145,000 | 171,000 | 186,000 |
| Income before taxes | 6,562,000 | 6,351,000 | 6,031,000 |
| Taxes | 1,841,000 | 1,840,000 | 1,674,000 |
| Minority interests | 62,000 | 67,000 | 74,000 |
| Net income continuing operations | 4,659,000 | 4,444,000 | 4,283,000 |
| Discontinued operations | |||
| Extraordinary items | |||
| Effect of accounting changes | |||
| Net income | 4,659,000 | 4,444,000 | 4,283,000 |
| Balance Sheet | |||
| Period ending | 31 Dec 13 | 31 Dec 12 | 31 Dec 11 |
| ASSETS | |||
| Current assets | |||
| Cash and equivalent | 2,581,000 | 2,883,000 | 2,219,000 |
| Short-term investments | 756,000 | 1,648,000 | 1,461,000 |
| Net receivables | 4,253,000 | 4,061,000 | 3,867,000 |
| Inventory | 3,864,000 | 3,837,000 | 3,416,000 |
| Other | 1,279,000 | 1,201,000 | 1,277,000 |
| Total current assets | 12,733,000 | 13,630,000 | 12,240,000 |
| Long-term investments | 1,575,000 | 1,325,000 | 1,051,000 |
| Property, plant, and equipment | 8,652,000 | 8,378,000 | 7,666,000 |
| Goodwill | 7,345,000 | 7,385,000 | 7,047,000 |
| Intangible assets | 1,688,000 | 1,925,000 | 1,916,000 |
| Accumulated amortization | |||
| Other assets | 1,557,000 | 1,233,000 | 1,696,000 |
| Deferred asset charges | |||
| TOTAL ASSETS | 33,550,000 | 33,876,000 | 31,616,000 |
| LIABILITIES | |||
| Current liabilities | |||
| Accounts payable | 2,924,000 | 2,834,000 | 2,674,000 |
| Short-term debt | 1,683,000 | 1,085,000 | 682,000 |
| Other | 2,891,000 | 2,281,000 | 2,085,000 |
| Total current liabilities | 7,498,000 | 6,200,000 | 5,441,000 |
| Long-term debt | 4,326,000 | 4,916,000 | 4,484,000 |
| Other liabilities | 3,778,000 | 4,720,000 | 5,829,000 |
| Deferred liability charges | |||
| Minority interest | 446,000 | 465,000 | 442,000 |
| Total liabilities | 16,048,000 | 16,301,000 | 16,196,000 |
| STOCKHOLDERS' EQUITY | |||
| Common stock | 9,000 | 9,000 | 9,000 |
| Retained earnings | 32,416,000 | 30,679,000 | 28,348,000 |
| Treasury stock | (15,385,000) | (12,407,000) | (11,679,000) |
| Capital surplus | 4,375,000 | 4,044,000 | 3,767,000 |
| Other equity | (3,913,000) | (4,750,000) | (5,025,000) |
| Total stock equity | 17,502,000 | 15,575,000 | 15,420,000 |
| TOTAL LIABILITIES AND OWNERS' EQUITY | 33,550,000 | 33,876,000 | 31,616,000 |
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