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Prepare a statement of cash flows for the year

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Prepare a statement of cash flows for the year 1 A comparative statement of financial position for Mann Company appears below: MANN COMPANY Comparative Statement of Financial Position Dec. 31, 2011 Dec. 31, 2010 Assets Equipment € 60,000 €32,000 Accumulated depreciation—equipment (20,000) (14,000) Long-term investments -0- 18,000 Prepaid expenses 6,000 9,000 Inventory 25,000 18,000 Accounts receivable 18,000 14,000 Cash 27,000 10,000 Total assets €116,000 €87,000 Equity and Liabilities Share capital-ordinary € 40,000 €23,000 Retained earnings 22,000 10,000 Bonds payable 37,000 47,000 Accounts payable 17,000 7,000 Total equity and liabilities €116,000 €87,000   Additional information: 1. Net income for the year ending December 31, 2011 was €27,000. 2. Cash dividends of €15,000 were declared and paid during the year. 3. Long-term investments that had a cost of €18,000 were sold for €14,000. 4. Sales for 2011 were €120,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method. 2 A comparative statement of financial position for Hartman Corporation is presented below: HARTMAN CORPORATION Comparative statement of financial position 2011 2010 Assets Land 18,000 40,000 Equipment 70,000 60,000 Accumulated depreciation (20,000) (13,000) Prepaid insurance 25,000 17,000 Accounts receivable (net) 70,000 60,000 Cash 46,000 31,000 Total Assets $209,000 $195,000 Equity and Liabilities Share capital-ordinary $140,000 $115,000 Retained earnings 31,000 55,000 Bonds payable 27,000 19,000 Accounts payable 11,000 6,000 Total equity and liabilities $209,000 $195,000 Additional information: 1. Net loss for 2011 is $10,000. 2. Cash dividends of $14,000 were declared and paid in 2011. 3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $22,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for ordinary shares. The fair value of the shares at the time of the exchange was $25,000. Instructions Prepare a statement of cash flows for the year ended 2011, using the indirect method. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Prepare a statement of cash flows for the year

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