Use indirect method to prepare statement of cash flows

Assignment Help Corporate Finance

Reference no: EM1346118

Statement of Cash Flows
Cedar Company
Comparative Balance Sheet
December 31
2008 2007
Cash 64,000 36,000
Accounts receivable, net 53,000 57,000
Inventory 171,000 123,000
Land 180,000 285,000
Building 300,000 300,000
Accumulated depreciation (75,000) (60,000)
Equipment 1,545,000 900,000
Accumulated depreciation:(177,000) (141,000)
Total $2,061,000 $1,500000
Account payable 172,000 150,000
Bonds payable 480,000 -0-
Capital stock, $10 par 1,125,000 1,125,000
Retained earnings 284,000 225,000
Total $2,061,000 $1,500,000

Additional data:
1) net income for the year amounted to $104,000.
2) cash dividends were paid amounting to 4% of par value.
3) land was sold for $120,000.
4) Cedar sold equipment, which cost $225,000 and had accumulated depreciation of $90,000, for $105,000.
Prepare a statement of cash flows using the indirect method.

Reference no: EM1346118

Questions Cloud

Knowledge competency and related issues : Knowledge competency and related issues - Explain how is the rejection region defined and how is that related to the z-score and the p value

Benefits of binary file called registry : Write down the benefits and disadvantages of configuration in binary file called registry.

Communication and distribution of apple inc : Show two new product ideas that can result from your product, and address the needs of your target segments - What types of retailers will your company use for distributing your product?

Compute how many acres hectares each person : Compute how many acres, hectares each person wold occupy if all U.S. residents.

Use indirect method to prepare statement of cash flows : Cedar sold machine, which cost 225,000$ & had accumulated depreciation of 90,000$, for $105,000. Make a statement of cash flows using the indirect method.

Describe whether you communicate these identities : Describe whether you communicate these identities differently, and why. Please support your statements about how you communicate these identities with specific real-life examples.

Explaining concept of internet-first printing presses-mass : A number of historians explain concept of the internet as parallel to concept of first printing presses - mass communication.

Group to manage the md on call system : Would be the perfect group to manage the MD on call system and what are the possible problems and solutions that group may meet during managing the MD on call system?

What is the horizontal component of the force : A 700 N car traveling at 25m/s.The breaks are applied suddenly and the car slides to a stop. The average breaking force between the tires and the road is 7100 N.How far will the car slide once the breaks are applied.

User Account

All Pages