Statement of Cash Flows
Not what you're looking for?
Please see attached.
Presented below is information related to the operations of Bryers Corporation.
December
2006 2005 2006_
Cash $ 63,000 $ 40,000 Sales $420,000
Accounts receivable 58,000 48,000 Cost of goods sold 190,000
Inventory 37,000 22,000 Gross profit 230,000
Prepaid expenses 16,000 20,000 Depreciation expense 14,000
Land 36,000 20,000 Other operating expenses 141,000
Building 100,000 100,000 Income from operations 75,000
Accumulated depreciation? Loss on equipment sale 2,000
building (17,000) (8,000) Income before income taxes 73,000
Equipment 58,000 80,000 Income tax expense 23,000
Accumulated depreciation? Net income $ 50,000
equipment (15,000) (20,000)
Total $336,000 $302,000
Accounts payable $ 35,000 $ 39,000
Bonds payable 0 100,000
Common stock 200,000 100,000
Retained earnings 101,000 63,000
Total $336,000 $302,000
Additional information:
In 2006,
(a) Bryers declared and paid a cash dividend of $12,000.
(b) The company converted $100,000 of bonds into common stock.
(c) Equipment with a cost of $22,000 and a book value of $12,000 was sold for $10,000. Land was acquired for cash.
(d) Prepaid expenses pertain to operating expenses; accounts payable pertains to merchan-dise purchases.
Instructions
Prepare a statement of cash flows in proper form for 2006, using the indirect method.
Purchase this Solution
Solution Summary
The solution explains how to prepare a statement of cash flows for Bryers Corporation using the indirect method
Solution Preview
Please see the attached file.
Bryers Corporation
Statement of Cash Flows
For the Year Ended Dec 31, 2006
Indirect Method
$
Cash Flow from Operating Activities
Net Income 50,000
Add: Depreciation 14,000 This is non cash and so is added
Add: Loss on Sale of Equipment ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Operations Management
This quiz tests a student's knowledge about Operations Management
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.