Use the following to answer question 11-15 Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2011 and 2010 are provided below. STATEMENT OF FINANCIAL POSITION 12,31/11 1231/10 Property, plant and equipment 204,000 96,000 Less accumulated depreciation 180,000 108,000 Merchandise inventory 192,000 240,000 Accounts receivable $304,000 $480,000 Cash (160.000 144.000 (152.000 328.000 5720.000 5772.000 Share capital-ordinary 88,000 48,000 Retained earnings 176,000 196,000 Bonds payable 180,000 300,000 Accounts payable 108,000 108,000 Page Income taxes payable 168.000 $720,000 120.000 72.000 $4,200,000 3.576.000 624,000 INCOME STATEMENT For the Year Ended December 31, 2011 Sales Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income $300,000 96,000 396,000 228,000 36,000 192,000 48,000 144.000 The following additional data were provided: 1. Dividends for the year 2011 were 596,000. 2. During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The following question() relate to a statement of cash flows (direct method) for the year ended December 31, 2011, for Harlan Mining Company 11 The net cash provided by onerating activities is The following question(s) relate to a statement of cash flows (direct method) for the year ended December 31, 2011, for Harlan Mining Company 11. The net cash provided by operating activities is A) $100,000 B) $204,000. C) $144,000 D) $120,000 12. The net cash provided (used) by investing activities is A) $120,000 B) $(176,000) C) $(144,000). D) $24,000 13. Under the direct method, the cash received from customers is A) $4,200,000 B) $4,220,000 C) $4,128,000 D) $4,272,000 14. Under the direct method, the total taxes paid is A) $68,000 B) $48,000. C) $20,000 D) $28,000 Page 3 15. The net cash provided (used) by financing activities is A) $24,000. B) $96,000 C) $(120,000) D) $(216,000). Use the following to answer question 11-15 Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2011 and 2010 are provided below. STATEMENT OF FINANCIAL POSITION 12,31/11 1231/10 Property, plant and equipment 204,000 96,000 Less accumulated depreciation 180,000 108,000 Merchandise inventory 192,000 240,000 Accounts receivable $304,000 $480,000 Cash (160.000 144.000 (152.000 328.000 5720.000 5772.000 Share capital-ordinary 88,000 48,000 Retained earnings 176,000 196,000 Bonds payable 180,000 300,000 Accounts payable 108,000 108,000 Page Income taxes payable 168.000 $720,000 120.000 72.000 $4,200,000 3.576.000 624,000 INCOME STATEMENT For the Year Ended December 31, 2011 Sales Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income $300,000 96,000 396,000 228,000 36,000 192,000 48,000 144.000 The following additional data were provided: 1. Dividends for the year 2011 were 596,000. 2. During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The following question() relate to a statement of cash flows (direct method) for the year ended December 31, 2011, for Harlan Mining Company 11 The net cash provided by onerating activities is The following question(s) relate to a statement of cash flows (direct method) for the year ended December 31, 2011, for Harlan Mining Company 11. The net cash provided by operating activities is A) $100,000 B) $204,000. C) $144,000 D) $120,000 12. The net cash provided (used) by investing activities is A) $120,000 B) $(176,000) C) $(144,000). D) $24,000 13. Under the direct method, the cash received from customers is A) $4,200,000 B) $4,220,000 C) $4,128,000 D) $4,272,000 14. Under the direct method, the total taxes paid is A) $68,000 B) $48,000. C) $20,000 D) $28,000 Page 3 15. The net cash provided (used) by financing activities is A) $24,000. B) $96,000 C) $(120,000) D) $(216,000)