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    SHOEBOX ENTERPRISES INC. Statement of Cash flows

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    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

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    https://brainmass.com/business/statement-of-cash-flows/400910

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    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.

    $2.19

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