Name: Date: Instructor: Course: Financial Accounting, Sixth Edition by Kimmel, Weygandt, and Kieso Primer on Using Excel in Accounting by Rex A Schildhouse PI284. Prgare statement of ash flows-irect miched and com e s basalraties. Presented below are the financial statements of Helwany Company HELWANY COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $35.000 $20.000 Accounts receivable 20.000 14.000 Inventory 28.000 20.000 Property, plant, and equipment 60.000 78.000 Accumulated depreciation L (32.000) (24.000) Total $111.000 $108.000 Liabilities and Stockholders' Equity Accounts payable $19.000 $15.000 Income taxes payable 7.000 8.000 Bonds payable 17.000 33.000 Common stock 18.000 14.000 Retained camings 50.000 38.000 Total $111.000 $108.000 $242.000 175.000 67.000 HELWANY COMPANY Income Statement For the Year Ended December 31, 2012 Sales Cost of goods sold Gross profit Selling expenses $18.000 Administrative expenses 6.000 Income from operations Interest expense Income before income taxes Income tax expense Not income 24.000 43.000 3.000 40.000 8.000 $32.000 $18.00 Additional data: 1, Depreciation expense was $17.500 2, Dividends declared and paid were $20.000 3, During the year equipment was sold for $8.500 originally and had accumulated depreciation of $9.500 4, Accounts payable pertains to merchandise suppliers. 5, All operating expenses except for deprecation were paid in cash 6, All depreciation expense is in the selling expense category. 7, All sales and purchases are on account. cash. This equipment cost at the time of sale. Instructions: (a) Prepare a statement of cash flows using the direct method (b) (1) Compute the current cash debt coverage ratio. Amount + Amount Formula Amount Formula Times HELWANY COMPANY Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Title Less cash payments: Title Formula Title Formula Title Fomula Title Formula Title Number Calculation as desired Calculation as desired Formula Formula (b) (2) Compute the cash debt coverage ratio. Amount + Amount Cash flows from investing activities Title Amount Amount Formula Times Number Amount Cash flows from financing activities Title Title Title Title Calculation as desired Calculation as desired Amount Amount Formula (b) (3) Compute the free cash flow. Amount Amount - Amount = Fomula Title Title Title Formula Amount Formula Computations: (1) Cash recipts from customers Title Title Title Amount Amount Formula L (2) Cash payments to suppliers Title Title Title Title Title Amount Amount Formula Amount Formula (3) Cash payments for operating expenses Title Title Title Amount Amount Formula (4) Cash payments for income taxes Title Add: Title Title Amount Amount Formula
