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.

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.