Question
(Worksheet Preparation or indirect Statement of Cash Flows) Below is the comparative balance sheet for ABC Industries. Dec. 31, Dec. 31, 2012 2011 Cash $
- (Worksheet Preparation or indirect Statement of Cash Flows) Below is the comparative balance sheet for ABC Industries.
Dec. 31, Dec. 31,
2012 2011
Cash $ 9,500 $ 11,000
Short-term investments 35,000 50,000
Accounts receivable 71,000 80,000
Allowance for doubtful accounts (4,000) (5,000)
Inventories 61,800 41,000
Prepaid insurance 0 2,000
Land 40,000 20,000
Buildings 140,000 140,000
Accumulated depreciationbuildings (20,000) (15,000)
Equipment 63,000 35,000
Accumulated depreciationequipment (23,000) (11,100)
Trademarks 25,000 0
$398,300 $347,900
Dec. 31, Dec. 31,
2012 2011
Accounts payable $ 46,500 $ 36,000
Short-term notes payable 15,000 10,000
Accrued payables 5,000 10,000
Mortgage payable 65,000 70,000
Capital stock 63,000 58,000
Additional paid-in capital 156,000 134,000
Retained earnings 47,800 29,900
$398,300 $347,900
Dividends in the amount of $30,000 were declared and paid in 2012.
Instructions From this information, prepare a worksheet for a statement of cash flows. Make reasonable assumptions as appropriate. The short-term investments are considered available-for-sale, and no unrealized gains or losses have occurred on these securities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started