Purchase Solution

Statement of Cash Flows

Not what you're looking for?

Ask Custom Question

The balance sheets for 2004 and 2003 for Columbia Sportswear are attached. In addition, Columbia reported the following information:
? 2004 net income was $138,624. Tax expense was $76,297.
? Columbia did not pay dividends in 2004.
? Columbia sold property, plant and equipment for $40 cash and recognized a loss of $541 on this sale.
? Columbia sold investments for cash at original cost (i.e., there was no gain or loss).
? Depreciation of plant, property and equipment totaled $18,544 in 2004. Amortization of intangible assets totaled $84.
? Assume all capital expenditures and purchases of other long-term assets were paid in cash.
? Other liabilities consist of various long-term operating liabilities.

Note you will have to determine the effect on the cash flow statement of any other event(s) by analyzing the given information.

1) Prepare the cash flow statement for 2004 using the indirect method.

2) Suppose you are an investor. Evaluate Columbia's policy of not paying you a dividend. Why may Columbia not pay a dividend? Does the company have sufficient cash flow to pay a dividend? Explain.

Attachments
Purchase this Solution
Solution Summary

The solution explains how to prepare a statement of cash flows

Solution Preview

Please see the attached file for the statement of cash flows.

A company many not pay dividends since it may be a growing company and needs cash for investment. The company may feel that it is able to earn a better return on investment then what the shareholders may be able to get. The ...

Purchase this Solution
Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • Three Major Activities on the Statement of Cash Flows

    Cite examples of cash flows for each activity. The statement of cash flows provides details on the actual cash the company generates. The statement of cash flows is a key tool for investors.

  • Statement of Cash Flow items

    which of the following represents an inflow of cash and would be reported on the statement of cash flows?

  • Linus Corporation

    137,446 Cash received from issuing common stock 22,734 Determine which items should be included in a statement of cash flows, and then complete the statement of cash flows for Linus Corporation.

  • Statement of cash flows

    cash is the statement of cash flows.

  • Govt. accounting-differences in the Statement of Cash Flows

    I have had to create several statements of cash flows for various types of businesses. The most common statement of cash flows that I have created has been for our accounting firm.

  • Apple and Samsung Statement of Cash Flow Comparison

    559368 Apple and Samsung Statement of Cash Flow Comparison Which of the two financial statements (income and statement of cash flow) is the better one? Comment on the differences between Apple's and Samsung's statement of cash flows.

  • Statement of cash flows - Direct and indirect methods

    - Compare the statement of cash flows with income statement using terms of net income and cash at end of the year. Statement of cash flows explains the movement of cash and the net change in cash for the particular financial year.

  • Indirect Statement of Cash Flows

    Cash flow statement is one of the key financial statements. The statement of cash flows provides information about cash receipts and cash payments of an entity during a period.

  • Carpino Company

    209774 Statement of Cash Flows I need help understanding and preparing a statement of cash flows using the indirect method from a statement of cash flows. Please see the attached file.

  • Statement of Cash Flows - direct and indirect method

    159379 Preparation of Statement of Cash Flows - Consolidated Enterprises Inc E10-5 Preparation of Statement of Cash Flows The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and

View More Related Solutions