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You have been hired by Seeser Flappits Company to prepare its 2014 cash flow state- ment. The company provides you with its 2014 income statement
You have been hired by Seeser Flappits Company to prepare its 2014 cash flow state- ment. The company provides you with its 2014 income statement as follows: 7-31 Sales (net) Cost of goods sold. Gross profit i $56,600 (31.400) $25,200 $19.200 Depreciation expense....2.800 Other expenses (all cash) 1000 Total operating expenses Net Income (23.000) $ 2.200 You determine that these numbers are correct. You review the company's 2014 begin- ning and ending balance sheets and find that the cash balance was $1,900 on January I. 2014, and $5.100 on December 31, 2014. In addition, you find the follawing changes: Accounts receivable Inventory Accounts payable Salaries payable $4.200 decrease 5,600 decrease 2.500 decrease 1.200 increase Furthermore, you determine that during 2014, the company sold equipment for $4,800 purchased land for $13.000, and issued a note payable for $7,500, all for cash. The owner also withdrew $9.600, After all these changes, the company had average total assets of $74,000 for 2014. Required:(1) Using your findings, prepare the company's 2014 cash flow statement (use the direct method for operating cash flows). (2) Compute the company's 2014 cash return on total assets
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