| Cash Flow Statement |
| An example of a question we may be able to assist you
with…. |
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The data below is typical
for deriving a Cash Flow Statement at the College, Pre-University and
University levels. We'll respond to questions such as this one and other
similar questions that you may have. How about trying this question, could
you prepare the Cash Flow Statement using both the Direct and Indirect
methods? |
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| Balance Sheet |
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December 31, 2004 |
December 31, 2003 |
| Cash |
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$104,550 |
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$83,300
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| Accounts
Receivable |
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$170,000 |
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$146,200 |
| Inventory |
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$162,350 |
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$127,500 |
| Current Assets |
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$436,900 |
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$357,000 |
| Equipment |
$425,000 |
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$333,200 |
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| Accumulated
Depreciation |
($153,000) |
$272,000
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($102,000) |
$231,200
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| Total Assets |
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$708,900
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$588,200
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| Accounts Payable |
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$178,500 |
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$155,550 |
| Wages Payable |
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$27,200
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$25,500
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| Income Tax
Payable |
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$10,200
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$16,150
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| Current Liabilities |
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$215,900 |
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$197,200 |
| Bonds |
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$136,000 |
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$102,000 |
| Additional paid-in
capital |
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$42,500
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$42,500
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| Common Stock |
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$68,000
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$68,000
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| Retained Earnings |
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$246,500 |
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$178,500 |
| Liabilities & Equity |
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$708,900 |
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$588,200 |
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| Income Statement for period ending December 31,
2004 |
| Sales |
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$1,530,000 |
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| Less: |
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| Cost of Goods Sold |
$919,700 |
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| Wages expense |
$278,800 |
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| Depreciation
expense |
$62,050
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|
www.accountingbase.com |
| Insurance expense |
$74,800
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| Gain on sale of
equipment |
($850) |
$1,334,500 |
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| Profit before
taxes |
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$195,500 |
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| Income Taxes |
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$85,000 |
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| Net Income |
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$110,500 |
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| Note: |
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| Equipment costing $15,300 was sold during the
year. |
| Required: |
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| Prepare a Cash Flow statement using the Direct
method |
| Prepare a Cash Flow statement using the Indirect
method |
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