Use the following financial statements and additional information to prep of cas

Question

Use the following financial statements and additional information to prep of cash flows for the year ended December 31, 2012 using the direct meth are the entire statement od. Derby Company Balance Sheets December 31 2012 2011 Change Assets: o Cash o Accounts receivable, net OMerchandise inventory S 85,600 65,200 20,400 56,750 16,100 157,750144,850 12,900 6,08012,680(6,600) 72,850 Prepaid expenses Equipment 80,600 35,000 Accumulated depreciation-Equipment Total assets (80.600) (97,600) 17.000 $522,280 $427.480 94.800 Liabilities: 52,850 45,450 15,240 59.200 79.200 (20,000) 7,400 Accounts payable 0 Income taxes payable 12,240 e Notes payable (long term) Total liabilities $127,290 $136,890 Equity: F Common stock F Paid-in capital in excess of par 200,000 150,000 50,000 40,000 13,000 Retained earnings Total equity Total liabilities and eauitv 53,000 141.990100590 41,400 $394,990 S290.590 $522,280 $427480 94,800

Explanation / Answer

Cash Flow statement by direct method is as prepared below:

Working:

Derby Company Statement of Cash Flows For the Year Ended December 31, 2012 Cash Flows From Operating Activities: Cash inflows: From customers 471,900 471,900 Cash outflow: To supplier of goods -218,040 To operating expenses -99,660 For bond interest -6,400 For income taxes -38,100 -362,200 Net Cash Provided by Operating Activities 109,700 Cash Flows From Investing Activities Sale of Equipment 29,700    Purchase of equipment -120,000 Net Cash Provided by Investing Activities -90,300 Cash Flows From Financing Activites Retirement of bonds payable -20,000 Sale of Common stock 63,000 payment of cash dividend -42,000 Net Cash Used by Financing Activities 1,000 Net Increase in Cash 20,400 Cash Balance, january 1 65,200 Cash balance, December 31 85,600

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.