Prepare a statement of cash flows for paulino corporation

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Reference no: EM13522219

Preparing a Statement of Cash Flows

The following are comparative balance sheets for the Paulino Corporation for 2000 and 1999 and the income statement for the year ended December 31, 2000:

Paulino Corporation

Comparative Balance Sheets

December 31

Assets

2000

1999

Cash

$ 89,000

$ 60,000

Accounts receivable

65,000

50,000

Inventory

200,000

90,000

Land

100,000

225,000

Equipment, net

371,000

380,000


$825,000

$805,000

Liabilities and Shareholders' Equity

Accounts payable

54,000

32,000

Dividends payable

15,000

0

Interest payable

6,000

8,000

Mortgage payable

130,000

305,000

Invested Capital

capital280,000

280,000

Retained earnings

340,000

180,000


$825,000

$805,000

Paulino Corporation

Income Statement

For the Year Ended December 31, 2000

Sales


$1,200,000

Cost of goods sold


(720,000)

Gross profit


480,000

Operating and other expenses

Depreciation

(9,000)


Other operating expenses

(275,000)


Gain on sale of land

15,000


Interest expense

(10,000)

(279,000)

Net income

$ 201,000

Additional Information:

1. Dividends declared during the year were $41,000.

2. Land at a cost of $125,000 was sold for $140,000.

3. The only change in equipment was the depreciation expense.

4. All other balance sheet account changes are from normal transactions.

Required

Use the direct method to prepare a statement of cash flows for Paulino Corporation.

Reference no: EM13522219

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