Discuss whether fleet limousine appears to have matched

Assignment Help Financial Accounting

Reference no: EM13941084

USING A SPREADSHEET TO PREPARE A STATEMENT OF CASH FLOWS

Fleet Limousine Service Inc. began operations in late March 2009. At the end of 2009, the following balance sheet was prepared for Fleet.

Fleet Limousine Service Inc. Balance Sheets December 31, 2009
ASSETS
Current assets: Cash Accounts receivable Supplies inventory Total current assets Long-term investments Property, plant, and equipment: Land Building Equipment Accumulated depreciation Net property, plant, and equipment Total assets	$ 7,200
	15,900
	3,100
		$ 26,200
		15,000
	$ 11,000
	175,000
	233,400
	$419,400
	(35,500)
		383,900
		$425,100
LIABILITIES AND EQUITY
Current liabilities: Accounts payable Unearned revenue Salaries payable Rent payable Total current liabilities Long-term liabilities: Long-term notes payable Total liabilities Equity: Common stock Retained earnings Total equity Total liabilities and equity	$ 12,700
	21,800
	4,600
	8,200
		$ 47,300
		95,000
		$142,300
	$300,000
	(17,200)
		282,800
		$425,100

Additional information:

a. During 2009, land was purchased for $11,000, a building was purchased for $175,000, and equipment was purchased for $233,400.

b. Depreciation expense for 2009 was $35,500.

c. The long-term note was issued for $100,000, and a principal payment of $5,000 was made during 2009.

d. Common stock was issued for $300,000 cash during 2009.

e. During 2009, there was a net loss of 17,200 and no dividends were paid.

Required:

1. Using a spreadsheet, prepare a statement of cash flows for 2009. Assume Fleet Limousine uses the indirect method.

2. Discuss whether Fleet Limousine appears to have matched the timing of inflows and outflows of cash.

Reference no: EM13941084

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