Statement of cash flow_ Fancy Footwork
accountguru
Problem:
Financial data of Fancy Footwork Company for 2013 and 2012 are presented below. | ||||
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FANCY FOOTWORK COMPANY |
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COMPARATIVE BALANCE SHEET |
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AS OF DECEMBER 31, 2013 AND 2012 |
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| 2013 | 2012 |
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Cash | $ 260,000 | $ 230,000 |
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Receivables | $ 156,000 | $ 120,000 |
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Inventory | $ 180,000 | $ 220,000 |
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Plant assets | $ 160,000 | $ 135,000 |
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Accumulated depreciation | $ (80,000) | $ (76,000) |
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Long-term investments (held-to-maturity) | $ 80,000 | $ 93,000 |
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| $ 756,000 | $ 722,000 |
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Accounts payable | $ 135,000 | $ 122,000 |
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Accrued liabilities | $ 30,000 | $ 33,100 |
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Bonds payable | $ 135,000 | $ 166,000 |
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Common stock | $ 180,000 | $ 165,000 |
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Retained earnings | $ 276,000 | $ 235,900 |
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| $ 756,000 | $ 722,000 |
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FANCY FOOTWORK COMPANY |
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INCOME STATEMENT |
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For the year ended Dec 31, 2013 |
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Sales |
| 750000 |
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Cost of Goods Sold |
| 530000 |
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Gross Margin |
| 220000 |
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Selling and administrative expenses |
| 106000 |
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Income from Operations |
| 114000 |
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Other revenues and gains |
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Gain on sale of investments |
| 7000 |
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Income before tax |
| 121000 |
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Income tax expense |
| 48400 |
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Net Income |
| 72600 |
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Additional information: |
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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. |
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Required: |
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A) Prepare a statement of cash flows using the indirect method |
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B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) |
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- 11 years ago
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- statement_of_cash_flow_fancy_footwork_company.docx