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Statement of cash flows - Indirect and direct methods

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Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.

Selected transaction data for the year ended March 31, 2010, include the following:
a. Net income...................................................... $77,000
b. Paid long- term note payable with cash.....................
$59,600
c. Cash payments to employees................................. $43,000
d. Loss on sale of land............................................. $9,600
e. Acquired equipment by issuing long- term note payable.. $15,400
f. Cash payments to suppliers.................................... $147,100
g. Cash paid for interest.......................................... $4,100
h. Depreciation expense on equipment......................... $13,900
i. Paid short- term note payable by issuing common stock... $5,700
j. Paid cash dividends............................................. $44,600
k. Received cash for issuance of common stock............... $2,200
l. Cash received from customers................................. $299,400
m. Cash paid for income taxes................................... $12,000
n. Sold land for cash............................................... $51,900
o. Interest received (in cash)..................................... $1,000
p. Purchased long- term investment for cash.................. $3,200

Requirements
1. Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts, except short- term notes payable, result from operating transactions.
2. Also prepare a supplementary schedule of cash flows from operations using the direct method.

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Solution Summary

Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.
Requirements
1. Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts, except short- term notes payable, result from operating transactions.
2. Also prepare a supplementary schedule of cash flows from operations using the direct method.

$2.19
See Also This Related BrainMass Solution

Statement of cash flows / Indirect Method and direct method

See attached file for clarity.

Condensed financial data of Shake It Up Inc. for 2010 and 2009 are presented below.

Shake It Up Inc.
Comparative Balance Sheet
As of December 31, 2010 and 2009
2010 2009
Cash $ 1,790 $ 1,165
Receivables 1,712 1,288
Inventory 1,621 1,912
Plant assets 1,880 1,675
Accumulated depreciation (1,180) (1,130)
Long-term investments (Held-to-maturity) 1,360 1,460
$ 7,183 $ 6,370
Accounts payable $ 1,182 $ 990
Accrued liabilities 200 240
Bonds payable 1,410 1,575
Capital stock 1,895 1,665
Retained earnings 2,496 1,900
$ 7,183 $ 6,370
Shake It Up Inc.
Income Statement
For the Year Ended December 31, 2010
Sales $ 6,850
Cost of goods sold 4,565
Gross margin 2,285
Selling and administrative expenses 925
Income from operations 1,360
Other revenues and gains
Gain on sale of investments 85
Income before tax 1,445
Income tax expense 578
Net income 867
Cash dividends 271
Income retained in business $ 596

Additional information:

During the year, $71 of common stock was issued in exchange for plant assets. No plant assets were
sold in 2010.

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