Explore BrainMass

Explore BrainMass

    Holly Company

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Using the indirect method, prepare a statement of cash flows for 2007.

    Exercise 13-8 Prepare a statement of Cash Flows (Indirect Method)
    Comparative financial statement data for Holly Company

    31-Dec
    2007 2006
    Cash 4 7
    Accounts Recievable 36 29
    Inventory 75 61
    Plant and Equipment 210 180
    Accumulated Depreication -40 -30
    Total Assets 285 247
    Accounts Payable 45 39
    Common Stock 90 70
    Retained Earnings 150 138
    Total liabilities and stockholder's equity 285 247

    For 2007, the company reported net income as follows:
    Sales 500
    Cost of Goods Sold 300
    Gross Margin 200
    Selling and admin expense 180
    Net Income 20

    Dividends of $8 were declared and paid during 2007.

    Required
    Using the indirect method, prepare a statement of cash flows for 2007.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:51 pm ad1c9bdddf
    https://brainmass.com/business/statement-of-cash-flows/holly-company-199151

    Solution Preview

    Exercise 13-8 Prepare a statement of Cash Flows (Indirect Method)
    Comparative financial statement data for Holly Company

    31-Dec Increase Activity
    2007 2006 (Decrease)
    Cash 4 7 -3
    Accounts Recievable 36 29 7 Operating
    Inventory 75 61 14 Operating
    Plant and Equipment 210 180 30 Investing
    Accumulated Depreication -40 -30 10 Operating
    Total Assets 285 247
    Accounts Payable 45 39 6 Operating
    Common Stock 90 70 20 Financing
    Retained Earnings 150 138 12
    Total liabilities and stockholder's equity 285 247

    For 2007, the company reported net income as follows:
    Sales 500
    Cost of Goods Sold 300
    Gross Margin 200
    Selling and admin expense 180
    Net Income 20

    Dividends of $8 were declared and paid during 2007.

    Required
    Using the indirect method, prepare a statement of cash flows for ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare a statement of cash flows for Holly Company using indirect method.

    $2.49

    ADVERTISEMENT