Statement of cash flow_ Fancy Footwork

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Problem: 

Financial data of Fancy Footwork Company for 2013 and 2012 are presented below.

 

 

 

 

FANCY FOOTWORK COMPANY

 

COMPARATIVE BALANCE SHEET

 

AS OF DECEMBER 31, 2013 AND 2012

 

 

2013

2012

 

Cash

 $       260,000

 $       230,000

 

Receivables

 $       156,000

 $       120,000

 

Inventory

 $       180,000

 $       220,000

 

Plant assets

 $       160,000

 $       135,000

 

Accumulated depreciation

 $       (80,000)

 $       (76,000)

 

Long-term investments (held-to-maturity)

 $         80,000

 $         93,000

 

 

 $       756,000

 $       722,000

 

 

 

 

 

Accounts payable

 $       135,000

 $       122,000

 

Accrued liabilities

 $         30,000

 $         33,100

 

Bonds payable

 $       135,000

 $       166,000

 

Common stock

 $       180,000

 $       165,000

 

Retained earnings

 $       276,000

 $       235,900

 

 

 $       756,000

 $       722,000

 

 

 

 

 

 

 

 

 

FANCY FOOTWORK COMPANY

 

INCOME STATEMENT

 

For the year ended Dec 31, 2013

 

Sales

 

750000

 

Cost of Goods Sold

 

530000

 

Gross Margin

 

220000

 

Selling and administrative expenses

 

106000

 

Income from Operations

 

114000

 

Other revenues and gains

 

 

 

    Gain on sale of investments

 

7000

 

Income before tax

 

121000

 

Income tax expense

 

48400

 

Net Income

 

72600

 

 

 

 

 

 

 

 

 

Additional information:

 

 

 

During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500.

 

 

 

 

 

Required:

 

 

 

A) Prepare a statement of cash flows using the indirect method

 

B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

 

    • 11 years ago
    Statement of cash flow_ Fancy Footwork
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