Prepare the statement of cash flow operating section only

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Reference no: EM13572267

Prepare the statement of cash flow operating section only for Tire Corp. as of December 31, 2013 based on the following comparative balance sheet and supplemental information. Prepare the section using the indirect method on the provided template.

Tire Corp.
Comparative Balance Sheet
December 31, 2013
	2013	2012
Current Assets:
Cash	83,375	32,500
Accounts Receivable	92,500	81,250
Inventory	215,000	225,000
Plant, Property, & Equipment:
Land	100,000	150,000
Buildings	325,000	250,000
Accumulated Depreciation	(81,625)	(72,875)
Total Assets	734,250	665,875

Current Liabilities:
Accounts Payable	54,375	58,375
Accrued Expenses	33,125	30,375
Income Taxes Payable	9,875	10,500
Long-Term Liabilities:
Notes Payable	125,000	187,500
Total Liabilities	222,375	286,750

Stockholder's Equity:
Common Stock ($5 Par)	30,000	20,000
Paid-In Capital in Excess of Par	106,250	106,250
Retained Earnings	375,625	252,875
Total Stockholder's Equity	511,875	379,125
Total Liabilities & Stockholder's Equity	734,250	665,875

Supplemental Information:

Net Income was $135,000.
Depreciation expense was $8,750 for the year.
Land being held for an investment was sold for $50,000 cash for a gain of $6,250.
The company purchased a new building for cash costing $75,000.
Between September 1 and December 31 the company issued 2,000 shares of $5 par common stock for cash at par.
In July, Tire Corp. paid PNC Bank $62,500 to satisfy note payable.
Dividends were declared and paid in December of 2011 in the amount of $6,000.

Reference no: EM13572267

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