Solution-Prepare the statement of cash flows

Prepare the statement of cash flows

Reference no: EM131717310

Question - Financial statements for E-Perform, Inc. follow:

E-PERFORM, INC. Statement of Financial Position December 31
Assets	2012	2011
Cash	$97,070	$48,450
Trading investments	129,350	116,890
Accounts receivable	74,670	44,680
Inventories	122,880	92,070
Prepaid expenses	18,130	26,790
Property, plant, and equipment	269,750	242,750
Accumulated depreciation	(50,890)		(53,700	)
Total assets	$660,960		$517,930
Liabilities and Shareholders' Equity
Accounts payable	$93,170	$77,870
Accrued liabilities	12,220	6,790
Bank loan payable	104,160	153,540
Common shares	201,520	174,950
Retained earnings	249,890		104,780
Total liabilities and shareholders' equity	$660,960		$517,930

E-PERFORM, INC. Income Statement Year Ended December 31, 2012
Sales	$491,820
Cost of goods sold	185,450
Gross profit	306,370
Operating expenses	116,540
Profit from operations	189,830
Other revenues and expenses
Unrealized gain on trading investments	$12,460
Interest expense	(4,170	)	8,290
Profit before income tax	198,120
Income tax expense	45,540
Profit	$152,580

Additional information:

1.	Prepaid expenses and accrued liabilities relate to operating expenses.
2.	An unrealized gain on trading investments of $12,460 was recorded.
3.	New equipment costing $84,630 was purchased for $25,480 cash and a $59,150 long-term bank loan payable.
4.	Old equipment having an original cost of $57,630 was sold for $1,410.
5.	Accounts payable relate to merchandise creditors.
6.	Some of the bank loan was repaid during the year.
7.	A dividend was paid during the year.
8.	Operating expenses include $45,710 of depreciation expense and a $7,700 loss on disposal of equipment.

Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Reference no: EM131717310

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Prepare the statement of cash flows

Reference no: EM131717310

Reference no: EM131717310

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