Prepare the companys statement of cash flows

Reference no: EM131913009

Problem

Maytag Corporation's balance sheets for the last 2 years are provided below:

Balance Sheets	2013	2012
Cash	$ 82	$ 40
Accounts Receivable	180	150
Inventory	200	200
Equipment	208	140
Accum. Depreciation	(72 )	(60 )
Total Assets	$598	$470
Accounts Payable	$130	$ 80
L/T Notes Payable	100	50
Common Stock	250	250
Retained Earnings	118	90
Total Liabilities & Stockholder Equity	$598	470

The company's income statement for 2013 is provided below:

Income Statement		2013
Sales		$345
Expenses:
Cost of Goods Sold	$120
Operating Expenses	58
Depreciation Expense	20
Interest Expense	2	200
Operating Income		145
Gain on Sale--Equipment*		5
Income before Taxes		150
Tax Expense		30
Net Income		$120

*The company sold equipment for $57 which had a cost of $52. During 2012, the company purchased $120 of new equipment all paid in cash.

A) Prepare the company's Statement of Cash flows for 2013 using the direct method.
B) Prepare the company's Statement of Cash flows for 2013 using the indirect method.

Reference no: EM131913009

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