Prepare statement of cash flows using the indirect method

Assignment Help Accounting Basics

Reference no: EM13259058

The comparative balance sheet of Gold Medal Sporting Goods Inc. for December 31, 2008 and 2007 is shown as follows.

Dec.                                                          31,2008 Dec.   31,2007
Assets
Cash        391,100    366,200
Accounts Receivable (net)                              142,400         130,600
Inventories                                 401,100         385,700
Investments    0 150,000
Land                                                            205,000    0
Equipment                           440,700    345,700
Accumulated depreciation-Equipment               (104,000)    (92,500)
                                   1,476,300        1,285,700
Liabilities and stockholders equity
accounts payable(merchandise creditors) 267,800          253,100
accounts expenses(operating expenses)    26,400            32,900
dividends payable                                          15,000    12,000
common stock, 10 par 80,000    60,000
paid in capital in excess of par comm. stock        300,000         175,000
retained earnings                                       787,100          752,700
                                                                1,476,300        1,285,700

The following additional information was taken from the records:

a. The investments were sold for $175,000 cash

b. Equipment and land were acquired for cash

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash

e. There was a $94,400 credit to Retained Earnings for net income.

f. There was a $60,000 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?

Reference no: EM13259058

Questions Cloud

Book value less than cash received : If a fixed asset is sold and the book value is less than cash received, the company must __________.

Examine and evaluate the disparity : Examine and evaluate the disparity of your state's budget allocation for education and property tax to the various localities.

The normal return on investment equals : A women managing a photocopying establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is$120,000.

In what ways did film production in the soviet bloc nations : In what ways did film production in the Soviet bloc nations adhere to and depart from the Soviet industry structure and the Socialist Realist aesthetic?

Prepare statement of cash flows using the indirect method : The investments were sold for $175,000 cash. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?

What is this projects equivalent annual cost : If the required return is 11 percent, what is this project's equivalent annual cost, or EAC?

Case study of zero company : On January 1, 2010, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, 2010. The December 31, 2011 carrying amount in the amortization table..

Determien the time displacement in a periodic function : Show that the time displacement in a periodic function has no effect on the magnitude spectrum, but changes the phase spectrum by an amount of -nω0τ radians for the component of the frequency nω0 if the time displacement is τ.

Describe the relationship between bus riders and gasoline : In Pioneer ville the price elasticity of demand fro bus ridersis .5, the income elasticity of demand fro bus riders is -0.1. Describe the relationship between bus riders and gasoline.

User Account

All Pages