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P13-5 HUNTER COMPANY Indirect Method, Cash Flow Statement For the Year Ended December 31, 2004

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Requirement 1:
HUNTER COMPANY
Statement of Cash Flows Spreadsheet
For the Year Ended December 31, 2004

12/31/2003 DR CR 12/31/2004
BALANCE SHEET + -
Cash 18,000 20,000 22,800 44,000
Accounts receivable 29,000 27,000
Merchandise inventory 36,000 30,000
Fixed assets-net 72,000 9,000 75,000
Total 155,000 176,000
Correct! Correct!
Accounts payable 22,000 25,000
Wages payable 1,000 800
Notes payable-long term 48,000 10,000 38,000
Common stock, no par 60,000 20000 80,000
Retained earnings 24,000 3,800 32,200
Total 155,000 62,800 22,800 176,000
Correct! Try again! Try again! Correct!
Given Data P13-05:

HUNTER COMPANY
Financial Statements
For the Year Ended December 31, 2004

2004
Balance sheet at December 31:
Cash $44,000
Accounts receivable 27,000
Merchandise inventory 30,000
Operational assets-net 75,000
Total $176,000

Accounts payable $25,000
Wages payable 800
Notes payable, long-term 38,000
Common stock, no par 80,000
Retained earnings 32,200
Total $176,000

Income statement for 2004:
Sales $100,000
Cost of goods sold (61,000)
Expenses (27,000)
Net income $12,000

Additional data:
Bought fixed assets for cash $9,000
Paid on long-term note payable 10,000
Sold unissued common stock for cash 20,000
Declared and paid cash dividend 3,800
Depreciation expense 6,000
Wages expense 10,000
Taxes expense 3,000
Other expenses 8,000

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Please note that Expenses paid are already deducted from Gross profit as follows.

Income ...

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