Q4. Prepare a statement of cash flows of Stanislaus Co. for the year ending December 31, 2012

(5 marks)

December 31 December 31

2011 2012

Land 58,800 21,000

Equipment................................................ 504,000 789,600

Inventory................................................. 168,000 201,600

Accounts receivable (net)........................ 84,000 151,200

Cash......................................................... 42,000 63,000

TOTAL........................................ 856,800 1,226,400

Share capitalordinary............................. 420,000 487,200

Retained earnings..................................... 67,200 205,800

Notes payable - Long-term...................... 168,000 302,400

Notes payable - Short-term...................... 67,200 29,400

Accounts payable..................................... 50,400 86,000

Accumulated depreciation....................... 84,000 115,600

TOTAL........................................ 856,800 1,226,400

Additional data for 2012:

1. Net income was 235,200.

2. Depreciation was 31,600.

3. Land was sold at its original cost.

4. Dividends of 96,600 were paid.

5. Equipment was purchased for 84,000 cash.

6. A long-term note for 201,600 was used to pay for an equipment purchase.

7. Share capitalordinary was issued to pay a 67,200 long-term note payable.