Accounting 202 Quiz #10 Name Use the following financial statements and addition

Question

Accounting 202 Quiz #10 Name Use the following financial statements and additional information to prepare methodo the statement of cash flows for the year ended December 31, 2012 using the indirect Derby Company Balance Sheets December 31 2012 2011 Change Assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-Equipment $ 85,600 65,200 20,400 56,750 16,100 157,750 144,850 12,900 12,680 (6,600) 280,600 245,600 35,000 (80,600) 97600) 17000 $522,280 $427480 94,800 72,850 6,080 Total assets Liabilities: Accounts payable Income taxes payable Notes payable (long term) s 52,850 $ 45,450 7,400 12,240 3,000 15,240 59.200 79,200 (20,000) Total liabilities $127,290 $136,890 Equity: Common stock 200,000150,000 50,000 53,000 41,990 13,000 41,400 40,000 Paid-in capital in excess of par Retained earnings 100,590 394.990 $290.590 Total equity Total liabilities and equity $522.280 $427,480 4800

Explanation / Answer

CASHFLOWS FROM OPERATING ACTIVITIES: Net profit for the year 83400 Add: Non cassh and non operating expense Depreciation 43000 Interest expense 6400 Less: Non Operating income Gain on sale of equipment -4700 Adjustment for Current assets and current liabilities: Increase in Aaccounts receivable (72850-56750) -16100 Increase in Merchandise inventory (157750-144850) -12900 Decrease in Prepaid expense (6080-12680) 6600 Increase in Accounts payable (52850-45450) 7400 Increase in Income tax payable (15240-12240) 3000 Net cash inflows from Operating activities: 116100

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