Using the indirect method prepare the companys statement of

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Reference no: EM13583240

The following financial statements relate to Alpine Trails Ski Resort: comparative balance sheets as of December 31, 20x3 and 20x2; income statement for 20x3; and

statement of retained earnings for 20x3.

Alpine Trails Ski Resort
Comparative Balance Sheets
December 31, 20x3 and 20x2
(In thousands)
Assets	20X3	20X2
Current assets:
Cash	25	22
Marketable securities	10	10
Accounts receivable	130	140
Merchandise inventory	40	35
Prepaid expenses	10	3
Total current assets	215	210
Investment in Coulterton Transit Company	55	45
Facilities and equipment	450	450
Less: Accumulated depreciation	(225)	(175)
Land	653	540
Total assets	1,148	1,070

Current liabilities:
Accounts payable	80	75
Accrued salaries payable	15	25
Deferred revenue	3	5
Total current liabilities	98	105
Deferred income taxes	20	15
Bonds payable	190	190
Total liabilities	308	310
Stockholders' equity:
Common stock	270	270
Retained earnings	570	490
Total stockholders' equity	840	760
Total liabilities and stockholders' equity	1,148	1,070

Alpine Trails Ski Resort
Income Statement
For the Year Ended December 31, 20x3
(In thousands)
Revenue:
Slope fees	340
Condominium rentals	625
Sales of merchandise	75
Total revenue		1,040
Less: Cost of merchandise		50
Gross margin		990
Less: Operating expenses
Salaries	310
Insurance	80
Property taxes	35
Depreciation	50
Utilities	100
Maintenance	50
Advertising	20
Administration	170
Interest on bonds	15
Total operating expenses		830
Income before taxes		160
Income-tax expense		50
Net income		110

Alpine Trails Ski Resort
Statement of Retained Earnings
For the Year Ended December 31, 20x3
(In thousands)
Retained earnings, December 31, 20x2	490
Add: Net income for 20x3	110
Subtotal	600
Deduct: Dividends declared in 20x3 .	30
Retained earnings, December 31, 20x3	570

Alpine Trails did not buy or sell any facilities or equipment during 20x3.

Required:

Using the indirect method, prepare the company's statement of cash flows for 20x3. Refer to the financial statement given in the precceding problem for Alpine Trails ski resort

Required:

Set up T-accounts to use as an aid in preparing the company's statement of cash flows. Prepare statement for 20 X 3.

Required: Using the direct method , prepare the company's statement of cash flows for 20 x 3.

Reference no: EM13583240

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