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    Worksheet and statement of cash flows

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    Using given information, prepare a worksheet for statement of cash flows/statement of cash flows.

    SATELLITE 2010
    Worksheet for a Statement of Cash Flows
    For the Year Ended December 31, 2005

    Effects of Transactions
    Balance sheet effects: Beginning Debit Credit Ending
    Balance Changes Changes Balance
    Assets
    Cash and cash equivalents (x)
    Accounts receivable (3)
    Plant and equipment (net of
    accumulated depreciation) (6) (2)
    Totals

    Liabilities & Stockholders' Equity
    Note payable (short-term) (7)
    Accounts payable (4)
    Accrued expenses payable (5)
    Notes payable (long-term) (6)
    Capital stock (no par value) (8)
    Retained earnings (1)
    Totals

    Cash effects: Sources Uses
    Operating activities:
    Net income (1)
    Depreciation (2)
    Increase in accounts receivable (3)
    Increase in accounts payable (4)
    Decrease in accrued expenses
    payable (5)
    Investing activities:
    Cash paid for plant assets (6)
    Financing activities:
    Short-term borrowing (7)
    Issuance of capital stock (8)
    Subtotals
    Net decrease in cash (x)
    Totals

    Profit earned in 2004 $115,000

    SATELLITE 2010
    Comparative Balance Sheets
    December 31,
    2004 2005

    Assets
    Cash and cash equivalents $80,000 $37,000
    Accounts receivable 100,000 850,000
    Plant and equipment (net of accumulated depreciation) 600,000 2,653,000
    Totals $780,000 $3,540,000

    Liabilities & Stockholders' Equity
    Note payable (short-term) $- $1,450,000
    Accounts payable 30,000 63,000
    Accrued expenses payable 45,000 32,000
    Notes payable (long-term) 390,000 740,000
    Capital stock (no par value) 200,000 700,000
    Retained earnings 115,000 555,000
    Totals $780,000 $3,540,000

    Additional information for 2005:
    Net income $440,000
    Depreciation 147,000
    Cost of plant assets purchased 2,200,000
    Cash paid for plant assets 1,850,000
    Long-term note payable issued for plant assets 350,000
    Borrowed on line of credit (short-term notes payable) 1,450,000
    Capital stock issued (no par value) for cash 500,000

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    SATELLITE 2010
    Worksheet for a Statement of Cash Flows
    For the Year Ended December 31, 2005

    Effects of Transactions
    Balance sheet effects: Beginning Debit Credit Ending
    Balance Changes Changes Balance
    Assets
    Cash and cash equivalents 80,000 (x) 43,000 37,000
    Accounts receivable 100,000 (3) 750,000 850,000
    Plant and equipment (net of
    accumulated depreciation) 600,000 (6) 2,200,000 (2) 147,000 2,653,000
    Totals 780,000 3,540,000

    Liabilities & Stockholders' Equity
    Note payable (short-term) - (7) 1,450,000 1,450,000
    Accounts payable 30,000 (4) 33,000 63,000
    Accrued expenses payable 45,000 (5) 13,000 32,000
    Notes payable (long-term) 390,000 (6) 350,000 740,000
    Capital stock (no par value) 200,000 (8) 500,000 700,000
    Retained earnings 115,000 (1) 440,000 555,000
    Totals 780,000 ...

    Solution Summary

    The solution explains how to prepare a worksheet and use it to prepare a statement of cash flows for Satellite 2010

    $2.19

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