..ll AT&T; 2:26 PM @ 73% -1057512-dt-content-rid-4567122. 301-XX-FA17-01-02JACCT
ID: 2794354 • Letter: #
Question
..ll AT&T; 2:26 PM @ 73% -1057512-dt-content-rid-4567122. 301-XX-FA17-01-02JACCT-301-XX-FA I. Preparation of a Statement of Cash Flows The president of The Hardcastle Corporation understands that a statement ofh flows is one of required financial statements ile asks your assistance in preparing the statement. He provides you with the following comparative helance sheets for 2011 and 2010, as well as the income statement for the year ended December 31, 2011. THE HARDCASTLE CORPORATION Comparative Balance Sheets 2011 2010 Current assets: s 1,200 20,000 47,000 4,200 28,000 3,000 Accounts receivable Prepaid expenses Total current assets 5 66200 Property, plant, and equipment 5 3,800 8,700 Machinery and equipment, net Buildings, net 8,500 Total property, plant, and equipment Other assets Patents, net Total assels Liabilities and Owners Equity 2011 2010 Current liabaities Notes payable Current maturities of kong-term debt Accounts payable Accrued liabilities $ 4,000 2,000 5.500 $ 5,800 1,900 6,000 Total current liabilities Long-term debt 61,000 s 60,000 Common stock, no par Retained earmings Total stockholders' equity Total liabilities and stockholders' equity$12920 THE HARDCASTLE CORPORATION Statement of Income and Retained Earnings For the Year Ended December 31, 2011 Sales $174,000
Explanation / Answer
The Hardcastle Corporation :
Statement of Cash Flows
For the year ended December 31, 2011
Accounts Receivable:
Inventory
Accounts Payable
Accrued Liabilities
Cash paid for operating expenses = $ 24,000 - $ 1,000 ( Prepaid : BB) + $ 1,500 ( Prepaid : EB) = $ 24,500
$ $ Cash Flows from Operating Activities Cash received from customers 182,000 Cash paid to suppliers (126,500) Cash paid for operating expenses (24,500) Operating Cash Flows before Income Taxes 31,000 Less: Income Taxes Paid (4,000) Net Cash Provided by Operating Activities 27,000 Cash Flows from Investing Activities Proceeds from Sale of Machinery and Equipment 100 Additions to Machinery and Equipment (1,300) Additions to Buildings (7,000) Net Cash used in Investing Activities (8,200) ash Flows from Financing Activities Retirement of Notes Payable (1,800) Retirement of Long Term Debt (12,300) Interest paid (2,000) Dividends paid (1,700) Net Cash used in Financing Activities (17,800) Net Increase in Cash and Cash Equivalents 1,000 Beginning Cash and Cash Equivalents 4,200 Ending Cash and Cash Equivalents 5,200Related Questions
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