Safarl File Edit View History Bookmarks Window Help ezt Expect More. Pay Less Ch

Question

Safarl File Edit View History Bookmarks Window Help ezt Expect More. Pay Less Ch 12 9 Comparative Balance Sheet December 31, 2011 and 2010 Assets Cash Accounts receivable Inventory Prepaid expenses $ 5 $ 16 322 237 166 208 14 16 Total current assets 509 475 Property, plant, and equipment Less accumulated depreciation 517 438 (89) (75) Net property, plant, and equipment 428 363 Long-term investments 29 40 Total assets $ 966 $878 Liabilities and Stockholders' equity Accounts payable Accrued liabilities Income taxes payable $ 305 $229 84 80 71 74 Total current liabilities Bonds payable 459 384 206 180 Total liabilities 665 564 Common stock 171 210 130 104 Retained eamings Total stockholders' equity Total liabilities and stockholders' equity 301 314 $ 966 $ 878

Explanation / Answer

1) Net cash provided by operating activities $              117 2) Groton Company Statement of cash flows-Indirect Method For the year ended December 31, 2011 (Indirect Method) Operating Activities: Net Income $          65 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Expense               24 Gain on sale of investment               -5 Loss on sale of euipment                 3 Increase of accounts receivable             -85 Decrease of inventory               42 Incresae of prepaid expense               -2 Increase of accounts payable               76 Decrease of accrued liabilities             -10 Increase of income tax payable                 9 Net cash provided by operating activities            117 Investing activities: Sale of equipment               18 Sale of investment               16 Purchase of equipment           -110 Net cash used by investing activities             -76 Financing activities: Issuance of bonds payable               26 Repurchase oof stock             -39 Dividend paid             -39 Net cash provided by financing activities             -52 Net change in cash             -11 Cash Balance, January 1 2011               16 Cash Balance, December 31, 2011                 5 Working: a. Beginning Property, plant and equipment            438 sales of equipment             -31 a            407 Ending Property, plant and equipment b            517 Purchase of equipment b-a            110 b. Accumulated Depreciation-Beginning               75 Accumulated Depreciation on sale of equipment             -10 a               65 Accumulated Depreciation-Ending b               89 Depreciation Expense b-a               24

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