SHOEBOX ENTERPRISES INC. Statement of Cash flows
SHOEBOX ENTERPRISES INC. sells personalized items such as mugs, key chains, and plaques to the public. The company was started by two high school friends....(see case study pdf files attached):
Complete the statement of cash flows for 2010.
Data:
SHOEBOX ENTERPRISES INC.
BALANCE SHEETS
AS AT DECEMBER 31, 2010 AND 2009
Current assets 2010 2009
Restated
Cash on hand and at bank $72,800 $55,000
Accounts receivable 30,000 12,000
less allowance for doubtful accounts (3,000) -
Inventories 51,500 31,000
Prepaid expenses 1,000 800
Total current assets 152,300 98,800
Property, Plant and Equipment
Land 40,000 40,000
Buildings 61,000 50,000
Furniture and equipment 34,000 32,000
Vehicles 31,681 -
166,681 122,000
less accumulated depreciation (29,474) (21,000)
Net property, plant and equipment 137,207 101,000
Total assets $289,507 $199,800
Current liabilities
Accounts payable 21,200 25,400
Customer advances 4,800 1,100
Salaries payable 5,000 2,100
Accrued vacation pay 9,400 8,000
Interest payable 1,000 1,200
Taxation payable 14,992 2,600
Current portion of long term debt 24,323 14,323 10,000
Total current liabilities 80,715 50,400
Long term liabilities
Long term debt (net of current portion) 47,710 (2,290) 50,000
Stockholders' equity
Common stock $0.25 par 12,500 10,000
Additional paid in capital 26,000 16,000
Retained earnings 122,582 73,400
Total stockholders' equity 161,082 99,400
Total liabilities and stockholders' equity $289,507 $199,800
-
SHOEBOX ENTERPRISES INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2010
Revenues
Sales $345,500
Cost of goods sold (140,000)
Gross margin 205,500
Operating expenses:
Salaries and wages 92,900
Other operating expenses 12,600
Depreciation expense 12,074
Total operating expenses 117,574
Net operating income 87,926
Other income (expenses)
Interest expense (5,752)
Interest income 1,200
Gain on sale of asset 2,600
Total other expenses (1,952)
Net income before taxation 85,974
Tax expense 25,792
Net income after taxation $60,182
As previously reported $105,000
Adjustment to prior period
net of tax of $2,400 (5,600)
As restated 99,400
Issue of common stock 12,500
Net income for the year 60,182
less dividends paid (11,000)
Stockholders' equity end of year $161,082
https://brainmass.com/business/statement-of-cash-flows/400910
Solution Summary
The solution shows an indirect method cash flow statement. Included is an analysis of the changes in property, plant and equipment and related accumulated depreciation and an amortization schedule for the vehicle note so you can "prove" the balance sheet amounts and the amounts on the statement of cash flows.