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    Statement of Cash Flow

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    Balance Sheet
    Fiscal 2004
    PRIOR YEAR CURRENT YEAR

    Current Assets
    CASH $519,200 $480,000
    MARKETABLE SECURITIES $185,000 $200,000
    ACCOUNTS RECEIVABLES $138,000 $406,000
    INVENTORIES $1,135,000 $1,285,000
    PREPAID INSURANCE $29,400 $23,510
    OTHER CURRENT ASSETS $95,400 $229,300
    $2,102,000 $2,623,810 $560,900

    INVESTMENTS $165,000 $-

    Plant Assets and Goodwill
    LAND $500,000 $500,000
    BUILDING $1,490,000 $1,850,000
    MACHINERY & EQUIPMENT $1,378,000 $978,000
    LEASEHOLD IMPROVEMENTS $302,000 $302,000
    GOODWILL $440,000 $400,000
    Less ACCUM. DEPRECIATION $(987,000) $(445,000)
    $3,123,000 $3,585,000

    Total Assets $5,390,000 $6,208,810

    Current Liabilities
    allowance for doubtful acct. $21,000 $22,000
    ACCOUNTS PAYABLE $115,000 $386,000
    SALARIES PAYABLE $92,000 $76,960
    INCOME TAX PAYABLE $265,000 $223,650
    DEFERRED TAXES $245,000 $165,000
    OTHER CURRENT LIABILITIES $485,000 $349,500
    $1,223,000 $1,223,110

    BONDS PAYABLE, DUE 2028 $- $429,000
    PREFERRED STOCK, $100 PAR $800,000 $800,000

    Stockholder's Equity
    COMMON STOCK $477,000 $607,500
    RETAINED EARNINGS $2,890,000 $3,149,200 =2890000+ 639200-380000

    Total Liabilities and Owner's equity $5,390,000 $6,208,810

    Note (Retained income for current year = Previous year's retained income + Net Income for the year - Dividends paid)

    PRIOR FACTS

    A)        THE COMPANY SOLD 65,250 SHARES OF STOCK FOR $130,500
    B)        THE COMPANY PAID PREFERRED DIVIDENDS OF $64,000
    C)        THE COMPANY PAID COMMON DIVIDENDS OF $316,000
    D)        THE COMPANY'S NET INCOME WAS $639,200

    NEW DATA:

      E)    DURING THE YEAR THE COMPANY SOLD A BUILDING COSTING $580,000 WITH ACCUM. DEPRECIATION OF $580,000 FOR $200,000.
     

    F)       DURING THE YEAR THE COMPANY SOLD EQUIPMENT FOR $100,000. IT COST $400,000 AND HAD ACCUM. DEPRECIATION OF $330,000.  THE

    G)      THE COMPANY SOLD INVESTMENTS FOR $180,000.  THEY COST $165,000.

    H)      THE COMPANY PURCHASED A BUILDING FOR $940,000 AND ISSUED BONDS FOR $429,000.

    I)    THE ABOVE INFORMATION DOES NOT REQUIRE YOU TO CHANGE ANYTHING ON THE INCOME STATEMENT.  IEMS  "E" THRU "H" ARE PRESENTED ONLY TO HELP YOU PREPARE THE CASH FLOW STATEMENT.

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    https://brainmass.com/business/statement-of-cash-flows/prepare-statement-cash-flow-proper-format-26691

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    Solution Summary

    The expert prepares a statement of cash flow. The balance sheets for current assets are given.

    $2.19

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