Prepare statement of cash flows for sondergaard corporation

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Reference no: EM131929193

Exercise 1 - Assume that Gulistan Inc. has the following accounts at the end of the current year.

1.

Common Stock

14.

Accumulated Depreciation-Buildings.

2.

Discount on Bonds Payable.

15.

Cash Restricted for Plant Expansion.

3.

Treasury Stock (at cost).

16.

Land Held for Future Plant Site.

4.

Notes Payable (short-term).

17.

Allowance for Doubtful Accounts-Accounts Receivable.

5.

Raw Materials

18.

Retained Earnings.

6.

Preferred Stock Investments (long-term).

19.

Paid-in Capital in Excess of Par-Common Stock.

7.

Unearned Rent Revenue.

20.

Unearned Subscriptions Revenue.

8.

Work in Process.

21.

Receivables-Officers (due in one year).

9.

Copyrights.

22.

Finished Goods.

10.

Buildings.

23.

Accounts Receivable.

11.

Notes Receivable (short-term).

24.

Bonds Payable (due in 4 years).

12.

Cash.



13.

Salaries and Wages Payable.



Prepare a classified balance sheet in good form.

Exercise 2 - Presented below is a condensed version of the comparative balance sheets for Sondergaard Corporation for the last two years at December 31.


2012

2011

Cash

$233,616

$116,064

Accounts receivable

267,840

275,280

Investments

77,376

110,112

Equipment

443,424

357,120

Less: Accumulated depreciation-equipment

(157,728)

(132,432)

Current liabilities

199,392

224,688

Capital stock

238,080

238,080

Retained earnings

427,056

263,376

Additional information: Investments were sold at a loss (not extraordinary) of $10,416; no equipment was sold; cash dividends paid were $74,400; and net income was $238,080.

(a) Prepare a statement of cash flows for 2012 for Sondergaard Corporation.

(b) Determine Sondergaard Corporation's free cash flow.

Reference no: EM131929193

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