Solution-Prepare a statement of cash flows using the direct

Prepare a statement of cash flows using the direct method

Assignment Help Accounting Basics

Reference no: EM131814368

Question - Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.

FULTON CORP. COMPARITIVE BALANCE SHEET AS OF DECEMBER 31, 2008 AND 2007
	2008	2007
Cash	$800	$600
Investments	-	200
Receivables	2,250	2,100
Inventory	1,600	1,200
Plant assets	1,600	1,200
Accumulated depreciation	(600)	(455)
	$5,560	$4,845

Accounts payable	$750	$1,200
Accrued liabilities	330	520
Bonds payable	800	1,000
Capital stock	1,500	1,400
Retained earnings	2,270	725
	$5,650	$4,845

FULTON COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2008
Sales	$15,200
Cost of goods sold	10,400
Gross profit	4,800
Selling and admin expenses	1,205
Income from operations	3,595
Other revenues and gains
Loss on sale of investments	50
Income before income tax	3,545
Income tax expense	1,400
Net income	2,145
Cash dividends	600
Income retained in business	$1,545

Additional information: During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2008.

Instructions - Prepare a statement of cash flows using the direct method.

Reference no: EM131814368

Questions Cloud

Difference between privacy and confidentiality : Confidentiality communication is any communication between two people that is not supposed to be shared with anyone else.

Determining the average battery life between charges : A laptop computer maker uses battery packs supplied by two companies, A and B. While both brands have the same average battery life between charges (LBC).

The architect of modern-day positive psychology : The architect of modern-day positive psychology, Dr. Martin Seligman, speaks to the foundational basis of the psychological approach.

Review problem on manufacturer of a blood-pressure : A manufacturer of a blood-pressure measuring device for home use claims that its device is more consistent than that produced by a leading competitor.

Prepare a statement of cash flows using the direct method : During the year, $100 of common stock was issued in exchange for land. Prepare a statement of cash flows using the direct method

Develop the vision and mission statements for saint francis : Using the criteria you have selected above, develop the vision and mission statements for the Saint Francis de Sales Schools.

What would theorists such as erikson or levinson say : If not, think of an example you've seen in a book, movie, or TV show. What would theorists such as Erikson or Levinson say about such behaviors?

Average performance on tests for elementary school students : The Mozart effect refers to a boost of average performance on tests for elementary school students if the students listen to Mozart's chamber music.

Why is the handling of sexual harassment cases considered : Why is the handling of sexual harassment cases considered complicated? Explain why consistency in handling sexual harassment claims is important.

User Account

All Pages

Prepare a statement of cash flows using the direct method

Reference no: EM131814368

Reference no: EM131814368

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT