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    Cash Flow Statement

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    Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Show all work necessary.

    See attached file for full problem description.

    The comparative balance sheet of Everlast Flooring Co. for June 30, 2003 and 2002, is as follows
    June 30, 2003 June 30, 2002
    Assets
    Cash $124,200 $67,900
    Accounts Receivable (net) 102,400 97,600
    Inventories 142,700 123,500
    Investments 0 58,000
    Land 124,000 0
    Equipment 373,400 201,400
    Accumulated Depreciation (79,400) (58,900)
    $787,300 $489,500

    Liabilities and Stockholders' Equity
    Accounts Payable (Merchandise creditors) $93,200 $84,600
    Accrued Expenses (Operating Expenses) 13,000 12,300
    Dividends Payable 15,000 12,500
    Common Stock, $10 par 120,000 80,000
    Paid-in Capital in excess of par—common stock 310,000 130,000
    Retained earnings 236,100 170,100
    $787,300 $489,500

    The following additional information was taken from the records of Everlast Flooring Co
    a. Equipment and land were acquired for cash
    b. There was no disposals of equipment during the year
    c. The investments were sold for $50,000 cash
    d. The common stock was issued for cash
    e. There was a $126,000 credit to Retained Earnings for net income
    f. There was $60,000 debit to retained Earnings for cash dividends declared

    Instructions
    Prepared a statement of cash flows, using the indirect method of presenting cash flows from operating activities

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    https://brainmass.com/business/statement-of-cash-flows/cash-flow-statement-9534

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    This solution looks at preparing a cash flow statement using the indirect method.

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