Prepare a statement of cash flows using the indirect method for year 2011.


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29.99

Prepare a statement of cash flows using the indirect method for year 2011. 1 answer below » View complete question » UMLAUF COMPANY Balance Sheets December 31,2011 and 2010 2011 2010 Assets Cash $ 43,050 $ 23,925 Accounts receivable 34,125 39,825 Merchandise inventory 156,000 146,475 Prepaid expenses 3,600 1,650 Equipment 135,825 146,700 Accumdepreciation—Equipment . (61,950) (47,550) Total assets $310,650 $311,025 Liabilities and Equity Accounts payable $ 28,800 $ 33,750 Income UMLAUF COMPANY Balance Sheets December 31,2011 and 2010 2011 2010 Assets Cash $ 43,050 $ 23,925 Accounts receivable 34,125 39,825 Merchandise inventory 156,000 146,475 Prepaid expenses 3,600 1,650 Equipment 135,825 146,700 Accumdepreciation—Equipment . (61,950) (47,550) Total assets $310,650 $311,025 Liabilities and Equity Accounts payable $ 28,800 $ 33,750 Income taxes payable 5,100 4,425 Dividends payable 0 4,500 Bonds payable 0 37,500 Common stock, $10 par 168,750 168,750 Retained earnings 108,000 62,100 Total liabilities and equity $310,650 $311,025 UMLAUF COMPANY Income Statement For Year Ended December 31,2011 Sales $446,100 Cost of goods sold $222,300 Other operating expenses 120,300 Depreciation expense 25,500 (368,100) 78,000 Other gains (losses) Loss on sale of equipment 3,300 Loss on retirement of bonds 825 (4,125) 73,875 Income before taxes Income taxes expense (13,725) Net income $ 60,150 Additional Information a. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. b. Equipment purchases are for cash. c. Accumulated Depreciation is affected by depreciation expense and the sale of equipment. d. The balance of Retained Earnings is affected by dividend declarations and net income. e. All sales are made on credit. f. All merchandise inventory purchases are on credit. g. Accounts Payable balances result from merchandise inventory purchases. h. Prepaid expenses relate to “other operating expenses.” Required 1. Prepare a statement of cash flows using the indirect method for year 2011. 2. Prepare a statement of cash flows using the direct method for year 2011. View less » Jul 24 2014 07:49 AM

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