Listed below are some balances of XYZ, Inc as of and for the year ended December 31, 2012 and 2013
|
Year ending
|
12/31/13
|
|
|
Revenue
|
2,000,000
|
|
|
Cost of goods sold
|
600,000
|
|
|
Rent expense
|
120,000
|
|
|
Insurance expense
|
60,000
|
|
|
Interest expense
|
50,000
|
|
|
Income tax expense
|
55,000
|
|
|
Payroll and benefit expense
|
200,000
|
|
|
Depreciation cost
|
50,000
|
|
|
Amortization cost
|
10,000
|
|
|
Gain on sale of investments
|
20,000
|
|
|
Loss on building fire
|
50,000
|
|
|
Interest income
|
25,000
|
|
|
General and administrative cost
|
180,000
|
|
|
Dividend income
|
25,000
|
|
|
|
|
|
|
As of
|
12/31/12
|
12/31/13
|
|
Accounts receivable
|
300,000
|
325,000
|
|
Interest receivable
|
10,000
|
8,000
|
|
Inventory
|
375,000
|
350,000
|
|
Accrued payroll and benefits
|
65,000
|
78,000
|
|
Accrued rent
|
10,000
|
10,000
|
|
Prepaid insurance
|
100,000
|
80,000
|
|
Accrued general and administrative
|
15,000
|
10,000
|
|
Accrued income tax
|
10,000
|
55,000
|
|
Cash
|
50,000
|
1,567,000
|
The following is additional information with regards XYZ during the year ending December 31, 2013:
Paid a dividend of $100,000
Made lease payments of $30,000
Purchased Ford Motor Stock for $25,000
Borrowed $600,000 under its line of credit
Purchased land for $50,000
Loaned $25,000 to the CEO
Sold patent for $30,000
Proceeds from sale of GE stock $100,000
Made Bond payments of $10,000
Repurchased Company stock for $15,000
Received insurance proceeds of $12,000 related to building fire
Issued $200,000 of XYZ common stock
Requirements: Using the information above for XYZ Inc
(1) Prepare a complete cash flow statement for the year ending December 31, 2013 using the indirect method
(2) Prepare the operating section of the cash flow statement for the year ending December 31, 2013 using the direct method
(1) The cash flow statements should be prepared in proper form and format including all relevant headings, sections, captions, titles, totals and subtotals.
(2) Solutions must be prepare using either excel or word.