Prepare a statement of cash flows using the direct method

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Reference no: EM13971555

Financial data of Fancy Footwork Company for 2013 and 2012 are presented below

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FANCY FOOTWORK COMPANY
INCOME STATEMENT
For the year ended Dec 31, 2013
Sales.................... 750000
Cost of Goods Sold.............. 530000
Gross Margin .............. 220000
Selling and administrative expenses.....106000
Income from Operations..........114000
Other revenues and gains
Gain on sale of investments........7000
Income before tax.............121000
Income tax expense ...........48400
Net Income...............72600

Additional information:

During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500.

Required:

A) Prepare a statement of cash flows using the indirect method
B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule. 

 

 

 

Reference no: EM13971555

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