Question

Preston Company, Inc., has the following comparative balance sheet as of March 31, 2014.



Selected transaction data for the year ended March 31, 2014, include the following:
a. Net income, $ 76,400
b. Paid long- term note payable with cash, $ 60,000
c. Cash payments to employees, $ 42,700
d. Loss on sale of land, $ 9,500
e. Acquired equipment by issuing long- term note payable, $ 15,200
f. Cash payments to suppliers, $ 147,400
g. Cash paid for interest, $ 3,000
h. Depreciation expense on equipment, $ 13,700
i. Paid short- term note payable by issuing common stock, $ 5,000
j. Paid cash dividends, $ 45,200
k. Received cash for issuance of common stock, $ 3,200
l. Cash received from customers, $ 297,000
m. Cash paid for income taxes, $ 12,100
n. Sold land for cash, $ 53,000
o. Interest received (in cash), $ 1,200
p. Purchased long- term investment for cash, $ 3,000

Requirements
1. Prepare the statement of cash flows for Preston Company, Inc., for the year ended March 31, 2014, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short- term notes payable result from operating transactions.
2. Also prepare a supplementary schedule of cash flows from operations using the directmethod.


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  • CreatedAugust 27, 2014
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