From the information given prepare a statement of cash

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Reference no: EM13589597

You have completed the field work in connection with your audit of Alexander Corporation for the year ended December 31, 2012. The balance sheet accounts at the beginning and end of the year are shown below.

	Dec. 31, 2012	Dec. 31, 2011		Increase or (Decrease)
Cash	$538,292	$577,226		($38,934	)
Accounts receivable	909,274	683,761		225,513
Inventory	1,436,673	1,181,570		255,103
Prepaid expenses	23,244	15,496		7,748
Investment in subsidiary	214,039	0		214,039
Cash surrender value of life insurance	4,463	3,487		976
Machinery	400,959	368,030		32,929
Buildings	1,036,682	790,102		246,580
Land	101,693	101,693		0
Patents	133,653	123,968		9,685
Copyrights	77,480	96,850		(19,370	)
Bond discount and issue cost	8,720	0		8,720
	$4,885,172	$3,942,183		$942,989

Accrued taxes payable	$174,815	$154,186		$20,629
Accounts payable	579,705	542,360		37,345
Dividends payable	135,590	0		135,590
Bonds payable-8%	242,125	0		242,125
Bonds payable-12%	0	193,700		(193,700	)
Allowance for doubtful accounts	68,376	77,480		(9,104	)
Accumulated depreciation-buildings	821,288	774,800		46,488
Accumulated depreciation-machinery	335,101	251,810		83,291
Premium on bonds payable	0	4,649		(4,649	)
Common stock-no par	2,278,299	2,814,848		(536,549	)
Paid-in capital in excess of par-common stock	211,133	0		211,133
Retained earnings-unappropriated	38,740	(871,650	)	910,390
	$4,885,172	$3,942,183		$942,989

STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2012
January	1, 2012	Balance (deficit)	$(871,650	)
March	31, 2012	Net income for first quarter of 2012	48,425
April	1, 2012	Transfer from paid-in capital	823,225
		Balance	0
December	31, 2012	Net income for last three quarters of 2012	174,330
		Dividend declared-payable January 21, 2013	(135,590	)
		Balance	$38,740

Your working papers from the audit contain the following information:

1.		On April 1, 2012, the existing deficit was written off against paid-in capital created by reducing the stated value of the no-par stock.
2.		On November 1, 2012, 57,335 shares of no-par stock were sold for $497,809. The board of directors voted to regard $5 per share as stated capital.
3.		A patent was purchased for $29,055.
4.		During the year, machinery that had a cost basis of $31,767 and on which there was accumulated depreciation of $10,072 was sold for $17,433. No other plant assets were sold during the year.
5.		The 12%, 20-year bonds were dated and issued on January 2, 2000. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were retired at 100.9 plus accrued interest on March 31, 2012.
6.		The 8%, 40-year bonds were dated January 1, 2012, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1,625.
7.		Alexander Corporation acquired 70% control in Crimson Company on January 2, 2012, for $193,700. The income statement of Crimson Company for 2012 shows a net income of $29,055.
8.		Extraordinary repairs to buildings of $13,946 were charged to Accumulated Depreciation-Buildings.
9.		Interest paid in 2012 was $20,339 and income taxes paid were $65,858.

From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to 0 decimal places, e.g. 2,500. If an amount reduces the account balance then enter with negative sign.)

Reference no: EM13589597

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