Accounting 202 Quiz #11 Name Use the following financial statements and addition

Question

Accounting 202 Quiz #11 Name Use the following financial statements and additional information to prepare the entire statement of cash flows for the year ended December 31,2012 using the direct method. Derby Company Balance Sheets December 31 2012 2011 Change Assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-Equipment $ 85,600 S65.200 20.400 56,750 16,100 157,750 144,850 12.900 12,680 (6,600) 280,600 245,600 35,000 (80,600) (97,600) 17.000 $522,280 $427.480 94800 72,850 6,080 Total assets Liabilities: Accounts payable Income taxes payable Notes payable (long term) S 52,850 45,450 7,400 12,240 3,000 15,240 59.200 79,200 (20,000) Total liabilities $127,290 $136,890 Equity: Common stock Paid-in capital in excess of par Retained earnings 200,000 150,000 50,000 40,000 13,000 141.990 100.590 41,400 53,000 $394.990 $290.590 Total equity Total liabilities and equity $522,280 $427.480 94.800

Explanation / Answer

CASH FLOW STATEMENT Cash flows from Operating Activities: Cash received from Accounts reciavbles(56750+488000-72850) 471900 Payment to Accounts payable (See note) -218040 Payment of Operating expense (106260-12680+6080) -99660 Taxes paid (41100+12240-15240) -38100 Net cash provided from Operating activities 116100 Cash flows from Investing Activities: Equipment purchased -120000 Sale of equipment 29700 Net cash outflows from Investing Aactivities -90300 Cash flows from Financing Activities: Interest Payment -6400 Dividend payment (100590+83400-141990) -42000 Payment of Notes payable -20000 Issue of Common Stock Above par 63000 (253,000 -190000) Net cash used in financing activities -5400 Net cash inflows 20400 Aad: Beginning Balance of cash 65200 Ending balance of Cash 85600 Note: Payment made to accounts payable: Cost of goods sold 212540 Add: Edning inventory 157750 Less: Beginning Inventory -144850 Purchases made during the year 225440 Add: Beinning Accounts payable 45450 Less: Ending Accounts payable -52850 Payment made to Accounts payable 218040 Note: Sales received on Equipmnet: Beginning Balance of Accumulated dep 97600 Add: Depreciation 43000 Less: Ending balance of Accumulated Dep -80600 Dep on sold equipmnet 60000 Cost of Equipment: 85000 Less: acumulated dep 60000 Book Value 25000 Add: gain on sale 4700 Sales amount of Equipment 29700

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