Share
Explore BrainMass

Prepare a statement of cash flows for Amazing.com for the year ended December 31,

I need assistance preparing a cash flow statement. If you can view it, the attachment presents the following information much clearer.

Comparative financial statements for Amazing.com, Inc. follow:
2012 | 2011
Cash: $ 9 | $ 15
Accounts: Receivable 340 | 240
Inventory: 125 |175
Prepaid Insurance: 10 | 6
Property, Plant and Equipment: 610 | 470
less Accumulated Depreciation: (93) | (85)
Long-term Investments: 16 | 19
Total Assets: $ 1,017 | $ 840
Accounts Payable: $ 310 | $ 230
Accrued Salaries: 60 | 72
Unearned Revenue: 290 | 180
Bonds Payable: 40 | 34
Common Stock: 210 | 250
Retained Earnings: 107 | 74
Total Liabilities & Stockholders' Equity: $ 1,017 | $ 840
Sales: $ 800
Cost of Goods Sold: $ 500
Gross Profit: $ 300
Selling & Administrative Expenses: $ 213
Net Operating Income: $ 87
Other Revenues & Expenses: 0
Gain on Sale of Investments: $ 7
Loss on Sale of Equipment: 4 | 3
Income Before Taxes: 90
Provision for Income Taxes: 27
Net Income: $ 63

Blank Income Statement
For the Year Ended December 31, 2012
Assets:
Liabilities & Stockholders' Equity:

Create a Comparative Balance Sheet for Amazing.com, Inc.
December 31, 2012 and 2011

Other information:
- During 2012, the company sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16.
- In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago.
- The company purchased equipment totaling $180 during the year. These purchases were made with cash.
- Also, depreciation expense accounts for $24 of the Selling & Administrative Expense.
- Cash dividends totaling $30 were paid during 2012.
Required:
- Prepare a statement of cash flows for Amazing.com for the year ended December 31, 2012, utilizing the indirect method.

Attachments

Solution Summary

The expert prepares a statement of cash flows for Amazing.com. Comparative financial statements are provided.

$2.19