E23-3 Preparation of Operating Activities Section - Indirect Method, Periodic Inventory
The income statement of Rodriquez Company is shown below.
For The Year Ended December 31, 2012
Cost of goods sold
Beginning inventory $1,900,000
Goods available for sale 6,300,000
Ending inventory 1,600,000
Cost of goods sold 4,700,000
Gross profit 2,200,000
Selling expenses 450,000
Administrative expenses 700,000 1,150,000
Net income $1,050,000
1. Accounts receivable decreased $310,000 during the year.
2. Prepaid expenses increased $170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.
4. Accrued expenses payable decreased $120,000 during the year.
5. Administrative expenses include depreciation expense of $60,000
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Rodriquez Company, using the indirect method.
SCF - Direct Method
Mortonson Company has not yet prepared a formal statement of cash flows for the 2012 fiscal year. Comparative balance sheets as of December 31, 2011, and 2012, and a statement of income and retained earnings for the year ended December 31, 2012, are presented below.
Statement of Income and Retained Earnings
For The Year Ended December 31, 2012
Cost of goods sold $1,200
Salaries and benefits 725
Heat, light, and power 75
Property taxes 19
Patent amortization 25
Miscellaneous expenses 10
Interest 30 2,164
Income before income taxes 1,636
Income taxes 818
Net income 818
Retained earnings - January 1, 2012 310
Stock dividend declared and issued 600
Retained earnings - December 31, 2012 $528
Comparative Balance Sheet
Assets 2012 2011
Cash $333 $100
U.S. Treasury notes (Available-for-sale) 10 50
Accounts receivable 780 500
Inventory 720 560
Total current assets 1,843 1,210
Land 150 70
Buildings and equipment 910 600
Accumulated depreciation (200) (120)
Patents (less amortization) 105 130
Total long-term assets 965 680
Total assets $2,808 $1,890
Liabilities and Stockholders' Equity
Accounts payable $420 $330
Income taxes payable 40 30
Notes payable 320 320
Total current liabilities 780 680
Long-term notes payable - due 2014 200 200
Total liabilities 980 880
Common stock outstanding 1,300 700
Retained earnings 528 310
Total stockholders' equity 1,828 1,010
Total liabilities and stockholders' equity $2,808 $1,890
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and in accounts payable relate to sales and cost of sales. Do not prepare a reconciliation schedule.
Your tutorial is in excel with instructional notes about how to decide "which way" the adjustment does (up or down). This rule takes the guess work out of this assignment. Each is on its own separate tab.
CEMEX Patrimonio Hoy: Case Study
To provide a summary report of the case study attached and shall include the following sections
Section 1 - Description of the business, this section describes the major features of the case
Section 2 - Business Model, this section describes how the business works and how it was implemented
Section 3 - Potential Business Impact, this section explains the potential impact of the business on the operations and resources of the sponsor company
Section 4 - Potential Economic Development Impact, this section explains the potential impact of the business on the economic development problems or issues it seeks to address. Discussion should be supported by data and facts.
Section 5- Key success factors, identifies and explains the key success factors. The discussion of the key success factors should be based on the nature of the business activity and features of the business model.