Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please use just the balance sheet, because we don't have the income statement. Thank you! PROBLEM 14-8 Prepare a Statement of Cash Flows (L01, LO2)

image text in transcribedPlease use just the balance sheet, because we don't have the income statement. Thank you!

PROBLEM 14-8 Prepare a Statement of Cash Flows (L01, LO2) A comparative balance sheet and income statement for Eaton Company follow: excel Eaton Company Comparative Balance Sheet December 31, 2011 and 2010 2011 2010 $ 11 $ 4 310 160 8 482 230 195 6 442 500 420 Assets Cash Accounts receivable Inventory... Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets.. Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity.... Total liabilities and stockholders' equity 85 415 31 $928 70 350 38 $830 $300 70 71 441 195 636 160 132 292 $928 $225 80 63 368 170 538 200 92 292 $830 Statement of Cash Flows Equipment that had cost $30,000 and on which there was accumulated depreciation of $10,000 was sold during Year 2 for $26,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 1. Using the indirect method, compute the net cash provided by operating activities for Year 2. 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. Briefly explain why cash declined so sharply during the year. 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making

Authors: Mark S. Bettner

2nd Edition

1947098683, 9781947098688

More Books

Students also viewed these Accounting questions

Question

6 What is the balanced scorecard method?

Answered: 1 week ago