Question:
Financial statements for Rowe Publishing Company are presented below.
Required:
Prepare a statement of cash flows for 2011, using the direct method to determine net cash flow from operating activities.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Rowe Publishing Company Balance Sheets December 31, 2011 and 2010 Rowe Publishing Company Income Statement For the Year Ended December 31, 2011 2011 2010 $1,051,000 Less: Cost of goods sold Current assets: 473,000 $ 85,000 240,000 190,000 $515,000 66,000 Less operating 231,000 expnses: 170,000 Accounts receivable $1351,000) 125,000)376,000) Total curment assels $467,000 Property, plant, and equipment: Income from Building Equipment 5 400,000 155,000 $ 555,000 375,000) $400,000 130,000 $530,000 (350,000 $97,000 Less: Interest expense Income before Accumulated depreciation Net property, plant, 81,000 180,000 $695,000 180,000 Ls: Income Total assets 5647,000 taxes expense Net income $ 59,000 LIABILITIES AND EQUITY Additional information Current liabilities: $133,000 15,000 10,000 1. No buildings nor equipment were sold during Salaries payoble Income taxes payable 2011. Equipment was purchosed for $25,000 2. Notes payable in the amount of $35,000 were 3. Bonds payable of $50,000 were issued for cash Rowe Publishing declared and paid dividends of 7,000 cash Total current liabilities $158,000 $149,000 Long-lerm liabilities: repaid during 2011 Notes payable Bonds payable $115,000 $150,000 Total longterm li Total liabilities 150,000 $299,000 $323,000 $35,000 during 2011 Equily Common stock Retcined earnings $300,000 72,000 48,000 Total equity Total tiabilities and equity $695,000