Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011: 2011 2010 Cash 297000
Question:
Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011:
2011 | 2010 | |
Cash | 297000 | 153000 |
Receivables | 159000 | 117000 |
Inventory | 150000 | 180000 |
Prepaid expenses | 18000 | 27000 |
Plant assets | 1260000 | 1050000 |
Accumulated depreciation | -450000 | -375000 |
Patent | 153000 | 174000 |
1587000 | 1326000 | |
Accounts payable | 153000 | 168000 |
Accrued liabilities | 60000 | 42000 |
Mortgage payable | — | 450000 |
Preferred stock | 525000 | — |
Additional paid-in capital—preferred | 120000 | — |
Common stock | 600000 | 600000 |
Retained earnings | 129000 | 66000 |
1587000 | 1326000 |
1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.
2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.
The income statement for 2011 is as follows:
Sales ................ $1,980,000.00
Cost of sales ............... $1,089,000.00
Gross profit ............. $891,000.00
Operating expenses ............. $690,000.00
Net income .............. $201,000.00
Instructions
(a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2011.
(b) From the information above, prepare a schedule of cash provided by operating activities using the directmethod.
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen