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Prepare a statement of cash flows for Dair Company using: a. the indirect method b. the direct method DAIR COMPANY Income Statement For Year Ended
Prepare a statement of cash flows for Dair Company using:
a. the indirect method
b. the direct method
DAIR COMPANY Income Statement For Year Ended December 31, 2013 $700,000 Sales ..... $440,000 95,000 22,000 7,000 10,000 36,000 5,000 Cost of goods sold Wages and other operating expenses. Depreciation expense.. Amortisation expense. Interest expense . Income tax expense Loss on bond retirement. 615,000 Net income..... $ 85,000 DAIR COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets $ 27,000 53,000 $ 18,000 48,000 Cash...... Accounts receivable 103,000 12,000 Inventory .... Prepaid expenses Plant assets.... 109,000 10,000 360,000 (87,000) 43,000 336,000 (84,000) 50,000 Accumulated depreciation Intangible assets.. Total assets.... $487,000 $511,000 Liabilities and Shareholders' Equity Accounts payable . Interest payable... Income tax payable. Bonds payable... Share capital .. Retained earnings . $ 32,000 $ 26,000 4,000 7,000 8,000 6,000 60,000 252,000 157,000 120,000 228,000 98,000 Total liabilities and equity ...... $511,000 $487,000Step by Step Solution
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