Question
Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect
Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect method.
Sales | $1,000.00 |
Cost of Goods Sold | -$650.00 |
Depreciation Expense | -$100.00 |
Sales and General Expense | -$100.00 |
Interest Expense | -$50.00 |
Income Tax Expense | -$40.00 |
Net Income | $60.00 |
Assets | 2013 | 2014 |
Cash | $50.00 | $60.00 |
Accounts Receivable, Net | $500.00 | $520.00 |
Inventory | $750.00 | $770.00 |
Current Assets | $1,300.00 | $1,350.00 |
Fixed Assets, Net | $500.00 | $550.00 |
Total Assets | $1,800.00 | $1,900.00 |
Liabilities and Equity | ||
Notes Payable to Banks | $100.00 | $75.00 |
Accounts Payable | $590.00 | $615.00 |
Interest Payable | $10.00 | $20.00 |
Current Liabilities | $700.00 | $710.00 |
Long-Term Debt | $300.00 | $350.00 |
Deferred Income Tax | $300.00 | $310.00 |
Capital Stock | $400.00 | $400.00 |
Additional data for the period January 1, 2014 through December 31, 2014 are:
- Sales on account, $70,000.
- Purchases on account, $40,000.
- Depreciation, $5,000.
- Expenses paid in cash, $18,000 (including $4,000 of interest and $6,000 in taxes).
- Decrease in inventory, $2,000.
- Sales of fixed assets for $6,000 cash; cost $21,000 and two-thirds depreciated (loss or gain is included in income).
- Purchase of fixed assets for cash, $4,000.
- Fixed assets are exchanged for bonds payable of $30,000.
- Sale of investments for $9,000 cash.
- Purchase of treasury stock for cash, $11,500.
- Retire bonds payable by issuing common stock, $10,000.
- Collections on accounts receivable, $65,000.
- Sold unissued common stock for cash, $1,000.
please show calculations.
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