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Evergreen, Inc: Preparing a Statement of Cash Flows

You are an accountant at Evergreen, Inc and your boss (the CFO) has asked you to prepare the company's statement of cash flows for an upcoming shareholders meeting. He gave you the company's 2009 comparative balance sheet

Use to calculate the change in cash due to operating, financing, & investing activities.

December 31, 2011

Assets 12/31/2011 12/31/2010
Cash $367,000 $329,000
Accounts Receivable $80,000 $83,000
Inventory $213,000 $199,000
Prepaid Expenses $25,000 $21,000
Fixed Assets $463,000 $419,000
Accumulated Depreciation $(213,000) $(201,000)
Total Assets $935,000 $850,000

Liabilities &
Stockholders' Equity
Accounts Payable $112,000 $120,000
Salaries Payable $30,000 $28,000
Notes Payable $10,000 $17,000
Bonds Payable $50,000 $30,000
Common Stock $600,000 $570,000
Retained Earnings $133,000 $85,000
Total Liabilities & $935,000 $850,000
Stockholders' Equity

Note- The change in retained earnings was due to net income of $55,000 and payment of $7,000 in dividends.

Solution Summary

The solution prepares a statement of cash flows for Evergreen Inc.

$2.19