Reference no: EM13331323

Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770

Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.

Barton Publication Company, Inc. Balance Sheet As of March 31, 2010 and 2009
	2010	2009	Increase (Decrease)
Current assets :
Cash	$ 55,600	$14.700	$40,900
Accounts receivable	51,400	53,300	(1,900)
Inventories	65,400	59,700	5,700
Prepaid expenses	3,700	5,100	(1,400)
Long-term investment	10,000	6,800	3,200
Equipment, net	71,700	70,200	1,500
Land	35,500	97,000	(61,500)
Total assets	293,300	$306,800	(61,500)
Current liabilities
Note payable, short-term	$43,200	$48,900	$(5,700)
Account payable	4,300	3,500	800
Income tax payable	13,700	15,500	(1,800)
Salary payable	9,200	12,400	(3,200)
Interest payable	8,200	7,400	800
Accrued liabilities	2,900	3,400	(500)
Long-term note payable	48,900	93,100	(44,200)
Common stock	69,600	61,700	7,900
Retained earnings	93,300	60,900	32,400
Total liabilities and equity	$293,300	$306,800	$(13,500)

Selected transaction data for the year ended March 31, 2010, include the following :

1. Net income, $77,000
2. Paid long-term note payable with cash, $59,600
3. Cash payments to employees, $43,000
4. Loss on sale of land, $9,600
5. Acquired equipment by issuing long-term note payable, $15,400
6. Cash payments to suppliers, $147,100
7. Cash paid for interest, $4,100
8. Depreciation expense on equipment, $13,900
9. Paid short-term note payable by issuing common stock, $5,700
10. Paid cash dividends, $44,600
11. Received cash for issuance of common stock, $2,200
12. Cash received form customer, $299,400
13. Cash paid for income taxes, $12,000
14. Sold land for cash, $51,900
15. Interest received (in cash), $1,000
16. Purchased long-term investment for cash, $3,200

Requirements

1. Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
2. Also prepare a supplementary schedule of cash flows from operations using the direct method.