Country Vista Company_Statement of cash flows
accountguruCountry Vista Company_Statement of cash flows
Download and review the income statement for the Country Vista Company. You will use the income statement to help you complete Part 1 and Part 2 below.
· Country Vista Income Statement
Country Vista Company | ||
Income Statement | ||
For the Year Ended December 31, 2011 | ||
|
|
|
Sales |
| $2,48,000 |
Cost of Goods Sold |
| $1,16,000 |
Gross Profit |
| $1,32,000 |
Operating Expenses |
|
|
Wages and Salaries Expense | $44,000 |
|
Rent Expense | $16,000 |
|
Depreciation Expense | $30,000 |
|
Other Operating Expenses | $18,000 | $1,08,000 |
Income from Operations |
| $24,000 |
Gain on Sale of Equipment |
| $26,000 |
Income before Income Taxes |
| $50,000 |
Income Tax Expense |
| $17,500 |
Net Income |
| $32,500 |
Part 1: Indirect Method
Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below:
Additional Information:
· Increase in Accounts Receivables=$4,000
· Increase in Accounts Payables=$16,000
· Increase in Income Taxes Payable=$300
· Decrease in Prepaid Expenses=$10,000
· Decrease in Merchandise Inventory=$14,000
· Decrease in Long Term Notes Payable=$20,000
· Cash Paid to Purchase Land=$50,000
· Cash Paid to Purchase Equipment=$15,000
· Cash Paid to Retire Bonds=$25,000
· Cash Paid to for Dividends=$10,000
· Cash Received from the Sale of common stock=$50,000
· Cash at the start of the year=$24,000
Part 2: Direct Method
Using Excel and the below information please prepare the complete statement of cash flows using the direct method.
Additional Information:
· Cash Received from Customers=$80,000
· Cash Payments for Merchandise=$10,000
· Cash Payments for Operating Expenses=$5,000
· Cash payments for Interest=$6,000
· Cash Payments for Income Taxes=$3,000
- 10 years ago
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- country_vista_company_statement_of_cash_flows_solution.xlsx