Share
Explore BrainMass

Stiggins net cash provided by operations;Bell Industries

1- Stiggins Corporation had the following account balances for 2011:

December 31 January 1
Accounts Payable ...................... $67,200 $58,200
Prepaid Rent Expense .................. 24,600 37,200
Accounts Receivable (net) ............. 84,000 66,600

Stiggins' 2011 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2011 statement of cash flows?
a. $436,200
b. $445,200
c. $453,600
d. $454,200

2-. A comparative balance sheet for Bell Industries is given below:

Bell Industries
Comparative Balance Sheet
December 31, 2011 and 2010

Assets 2011 2010
Cash ........................................ $ 40,000 $ 10,000
Accounts receivable ......................... 100,000 92,000
Merchandise inventory ....................... 30,000 43,000
Land, buildings, and equipment .............. 325,000 200,000
Accumulated depreciation--buildings and
equipment .................................
(75,000)
(50,000)
Total assets ............................ $420,000 $295,000

Liabilities and Stockholders' Equity
Accounts payable ............................ $ 65,000 $ 75,000
Common stock ($25 par) ...................... 275,000 200,000
Paid-in capital in excess of par ............ 50,000 0
Retained earnings ........................... 30,000 20,000
Total liabilities and stockholders' equity $420,000 $295,000

Additional data from the company's records were:
(a) On July 1, 2011, exchanged 3,000 shares of common stock for equipment.
(b) On December 31, 2011, paid cash dividends of $40,000 and income taxes of $10,000.

Prepare a cash flow statement for Bell Industries for the year ended December 31, 2011, using the indirect method. Include any necessary supplemental disclosures.

Solution Summary

Stiggins net cash provided by operations in Bell Industries is determined.

$2.19