Prepare s and gs statement of cash flows

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Reference no: EM13847023

Presented below are the 2013 income statement and comparative balance sheet information for Siegfried & Royce (S&G).

Siegfried & Royce

Income Statement

For the Year Ended December 31, 2013

($ in thousands)

 

 

Sales revenue
  $12,500
Operating expenses:    
Cost of goods sold $7,300  

Depreciation

400

 

Rent

250

 

Administrative and other

2.200

 

Total operating expenses

 

10.150

Income before income taxes

 

2,350

Income tax expense

 

940

Net income

 

$ 1.410

Balance Sheet information ($ in thousands)

Dec. 31, 2013

Dec. 31, 2012


Assets:

 

 


Cash

$3,280

$1,300


Accounts receivable

1,250

980


Inventory

980

900


Prepaid rent

150

100


Plant & equipment

3,000

2,600


Less: Accumulated depreciation

(1,200)

_(840


Total assets

$7.460

$5,080


Liabilities and shareholders' equity:

 

 


Accounts payable

$ 500

$ 580


Payables for administrative and other expenses

650

700


Income taxes payable

450

350


Note payable (due 12/31/2014)

2,500

2,000


Common stock

1,500

1,000


Retained earnings

1.860

450


10.40

$5.080


Total liabilities and shareholders' equity


Required:

1. Prepare S&G's 2013 statement of cash flows, using the indirect method to present cash flows from operating activities.

Reference no: EM13847023

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