Prepare a Statement of Cash Flows. 
University of Michigan Dearborn ACC 356 Winter 2014 Quiz 6 Name_______________________________________________________________________________________________________________ Shown below are the comparative financial statements for Reposed, Inc. for the year ended December 31, 2013, and December 31, 2012. Sales Cost of goods sold Gross profit Selling and administration expense Loss on sale of land Interest expense Net income before taxes Income tax expense Net income (loss) Earnings (loss) per share Reposed, Inc. Income Statement For the Period Ended December 31 2012 $ 6,601,000 3,960,600 2,640,400 $ 726,110 $ 50,000 273,988 1,050,098 1,590,302 363,055 $ 1,227,247 $ 11.16 Net income (loss) Unrealized holding gains (losses) Total comprehensive income Reposed, Inc. Comprehensive Income Statement For the Period Ended December 31 2012 $ 1,227,247 422,625 $ 1,649,872 1|Page $ 264,275 42,152 $ $ $ $ 2011 change 2,402,500 $ 4,198,500 1,441,500 $ 2,519,100 961,000 $ 1,679,400 461,835 50,000 306,427 231,836 654,573 $ 935,729 132,138 $ 230,917 522,435 $ 704,812 5.22 2011 change 522,435 $ 704,812 28,101 $ 394,524 550,536 $ 1,099,336 Beginning retained earnings Net income (loss) Total dividends Ending retained earnings Reposed, Inc. Retained Earnings Statement For the Period Ended December 31 2012 $ 13,130,148 1,227,247 14,357,395 161,767 $ 14,195,628 Reposed, Inc. Statement of Accumulated Other Comprehensive Income For the Period Ended December 31 2012 Beginning accumulated other comprehensive income $ 329,186 Other comprehensive income 422,625 Ending accumulated other comprehensive income $ 751,811 2|Page $ $ $ $ 2011 12,708,075 522,435 13,230,510 100,362 13,130,148 $ $ $ $ $ change 422,073 704,812 1,126,885 61,405 1,065,480 2011 change 301,085 $ 28,101 28,101 $ 394,524 329,186 $ 422,625 Quiz 6 Winter 2014 Reposed, Inc. Balance Sheet December 31 2012 2011 change Assets Cash Available for sale securities Accounts receivable Less: Allowance for uncollectible accounts Inventory Current assets Long-term investments Property, plant and equipment $ $ 322,000 (28,980) $ 293,020 332,500 1,510,145 Land $ 155,000 (13,950) 50,000 $ 392,000 141,050 160,000 743,050 352,800 8,731,800 20,000 422,625 167,000 (15,030) 172,500 869,138 6,468,000 16,062,948 2,156,000 $ (1,320,550) 25,630,198 3,557,400 30,409,536 Goodwill Total long-term assets 3|Page $ 1,221,938 Equipment Building Less: Accumulated depreciation Total assets 70,000 814,625 $ 31,919,681 2,263,800 8,408,400 2,156,000 7,654,548 - (1,056,440) 15,975,960 2,371,600 18,700,360 $ 19,443,410 (264,110) 1,185,800 Reposed, Inc. Balance Sheet December 31 2012 2011 change Equities Liabilities Accounts payable Wages payable Unearned service revenue Current liabilities $ 3,630,550 1,452,220 1,545,600 $ $ Note Payable (5 years) Bonds payable 20-years Deferred tax liability - long-term Total liabilities 6,628,370 2,549,425 1,127,882 1,297,600 $ 4,566,465 439,083 11,633,918 Stockholders' equity Preferred stock Common stock Additional-paid-in-capital Total contributed capital Ending accumulated other comprehensive income Ending retained earnings Less Total stockholders' equity Total equity 1,081,125 324,338 248,000 $ 3,235,348 2,588,278 702,533 175,633 2,531,629 $ Treasury stock $ 5,823,626 751,811 14,195,628 20,771,065 (485,302) 20,285,763 31,919,681 1,653,463 140,507 2,007,236 1,605,789 (702,533) 4,566,465 263,450 (140,507) 1,228,112 982,489 $ 3,753,532 329,186 13,130,148 17,212,866 (301,085) 16,911,781 19,443,410 $ 422,625 1,065,480 (184,217) The only sale of long-term property was a section of land with a book value of $200,000 which sold for $150,000. Land and equipment were purchased. Preferred stock was sold at par. Instructions: Prepare a Statement of Cash Flows for the year ended December 31, 2013. Use the indirect method to calculate cash from operations. 4|Page - 5|Page
