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Complete balance sheet & Prepare Statement of changes in RE

The attached file has a statement of cash flows (indirect method) for Hartford Inc. for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of Decmeber 31, 2011 and 2010.

A) Complete the December 31,2011 and 2010, balance sheets.

B) Prepare a statement of changes in retained earnings for the year ended December 31,2011

Hartford Inc.
Statement of cash flows
For year ended December 31, 2011

Cash Flows from Operating Activities
Net Income $9,000
Add (deduct) items not affecting cash
Depreciation expense 45,000
Decrease in accounts receivable 23,000
Increase in inventory (7,000)
Increase in notes payable 12,000
Decrease in accounts payable (6000)
Net Cash provided by operating activities $76,000

Cash Flows from Investing Activities
Purchase of equipment $50,000
Purchase of buildings (48000)
Net cash used by investing activities $(98,000)
Cash flows from Financing Activities
Proceeds from short term debt 5,000
Cash used for retirement of long term debt $(25,000)
Proceeds from issuance of common stock 10,000
Payment of cash dividends on common stock (3,000)
Net cash used by financing activities $(13,000)
Net decrease in cash for the year $(35,000)

Hartford Inc
Comparative Balance Sheet
At December 31, 2011 and 2010
Assets 2011 2010
Current Assets
Cash $ $88,000
Accounts Receivable $73,000
Inventory 56,000
Total current assets $ $
Land $40,000
Buildings and equipment 260,000
Less: Accumulated depreciation (123,000)
Total land, buildings and equipment $ $
Total assets $ $
Liabilities
Current Liabilities
Accounts Payable $ $29,000
Short Term Debt 32,000
Note payable 36,000
Total Current Liabilities $ $
Long Term Debt $85,000 $
Owner's Equity
Common Stock $40,000 $
Retained Earnings
Total owner's equity $ $
Total Liabilities $ $

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Solution Summary

The solution completes balance sheet and prepares a statement of changes in retained earnings for Hartford Inc.

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