+1-415-670-9189
info@expertsmind.com
Write a statement of cash flows
Course:- Cost Accounting
Reference No.:- EM132354


Assignment Help
Assignment Help >> Cost Accounting

Question:

The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are presented below.

FARMER COMPANY

Comparative Balance Sheets

                                                              December 31,                            December 31,

ASSETS                                                           2011                                         2010

Cash                                                             $ 14,000                                  $ 9,000

Accounts receivable                                    52,000                                    24,000

Inventory                                                       87,000                                    40,000

Equipment                                                     125,000                                 100,000

Accumulated depreciation                           (42,000)                              (34,000)

Prepaid expenses                                           4,000                                     2,000

Land                                                                      -0-                                       7,000

Building                                                             50,000                                       -0-

Total Assets                                                     $290,000                                   $148,000

LIABILITIES AND STOCKHOLDERS' EQUITY             

Accounts payable                                           $ 25,000                                     $ 14,000

Interest payable                                                8,000                                           6,000

Taxes payable                                                  37,000                                         11,000

Note payable                                                    37,000                                         32,000

Bonds payable                                                 75,000                                         50,000

Common stock, $10 par                                  75,000                                         25,000

Retained earnings                                           33,000                                        10,000

Total Liabilities and Stockholders' Equity              $290,000                                   $148,000

Additional 2011 information:      

Net income, $31,000      

Sold land for gain of $3,000         

Paid dividends of $8,000              

Issued $50,000 stock to purchase building            

Required:

Using the indirect method, write a statement of cash flows for 2011 for Farmer Company using the form below. Include any required disclosures for noncash investing and financing transactions.


Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
Justify your answer by describing what is meant by the term depreciation, the role and process of recognizing depreciation in accounting reports, and by identifying the acco
Evaluate approximate Activity Cost Driver Rates (ACDR) for the drivers you have chosen.
FICA Tax Payable for 7.5 % of gross pay, credit Employees' income tax Payable for 15 percent of gross pay, and credit salaries payable for the net pay.
Determine total annual cost of ordering and carrying the glass. Evaluate the Economic Order Quantity for glass.
Evaluate that the degree of operating leverage is 2.90. The output rises to 78,000 units - Find what will the percentage change in operating cash flow ?
Describe the cost and explain what criteria for cost allocation decisions is being followed
What does Freddy have to expect in court.
What is the balance in Dowell's lease liability? An amortization schedule will be helpful in determining this amount.