Solution-Prepare and explain smith statement of cash flows

Prepare and explain smith statement of cash flows

Reference no: EM132000529

Question - Smith Corporation had the following comparative balance sheet information for 2012 and 2013:

Account	2013	2012
Cash	$ 60,000	$ 56,000
Accounts Receivable	96,000	100,000
Inventory	316,000	312,000
Prepaid Insurance	20,000	16,000
Property, Plant & Equipment	140,000	120,000
Accumulated Depreciation	(28,000)	(20,000)
Total	$ 604,000	$ 584,000

Accounts Payable	$ 28,000	$ 36,000
Bonds Payable	180,000	240,000
Common Stock	280,000	240,000
Retained Earnings	116,000	68,000
Total	$ 604,000	$ 584,000

The company reported net income for 2013 of $80,000. No property, plant & equipment was disposed of during the year. Smith paid $32,000 in cash dividends during 2013. Smith uses the indirect method to prepare the statement of cash flows.

Required: Prepare and explain Smith's Statement of Cash Flows for 2013.

Reference no: EM132000529

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Prepare and explain smith statement of cash flows

Reference no: EM132000529

Reference no: EM132000529

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