Assets Current Assets: Cash and cash equivalents Accounts Receivable, net Inventory Total Current Assets Property &...

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Assets Current Assets: Cash and cash equivalents Accounts Receivable, net Inventory Total Current Assets Property & Equipment at cost Less Accumulated depreciation Net Property & Equipment Total Assets Liabilities and Equity Current Liabilities: Accounts payable-trade Deferred Revenue Interest Payable Total Current Liabilities Long-term Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity Alethea Inc. Comparative Balance Sheets Dec. 31, 2010 Alethea Inc. Income Statement For year ended December 31, 2011 Revennes Cost of Goods Sold Gross Profit Wages and Salaries Depreciation Expense Interest Expense Total operating expense Operating Profit Plus: Gain on Sale of Equipment Income before tax Income Tax Expense Net Income $50,000 160,000 210.000 420,000 350,000 (120,000) 230,000 $650,000 $85.000 12,000 8.000 105,000 120,000 300,000 125.000 $650.000 Dec. 31, 2011 $65.000 166,000 214,000 445.000 380,000 (152,000) 228,000 $673.000 $83,000 $15,000 9,000 107,000 90,000 350,000 126.000 $673,000 $800.000 450.000 350,000 200,000 48,000 7,000 255,000 95.000 5.000 100,000 30,000 $70.000 Additional information: During the year 2011, Alethea Inc. sold equipment costing $30,000 with $16,000 in Accumulated depreciation. Dividends were declared and paid to common stockholders during the year. No shares were repurchased during the year. No new debt was issued during 2011. Required: Prepare a Statement of Cash Flows for Alethea Inc. (using the schedule on the next page) for the year ended December 31, 2011. Show the cash flows from operations using the indirect method. Alethea, Inc. Statement of Cash Flows For the year ended December 31, 2011 Cash Flows from Operating Activities (CFO) Net CFO Cash Flows from Investing Activities (CFI) Net CFI Cash Flows from Financing Activities (CFF) Net CFF Net Change in Cash (Net CFO + Net CFI + Net CFF) mu Assets Current Assets: Cash and cash equivalents Accounts Receivable, net Inventory Total Current Assets Property & Equipment at cost Less Accumulated depreciation Net Property & Equipment Total Assets Liabilities and Equity Current Liabilities: Accounts payable-trade Deferred Revenue Interest Payable Total Current Liabilities Long-term Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity Alethea Inc. Comparative Balance Sheets Dec. 31, 2010 Alethea Inc. Income Statement For year ended December 31, 2011 Revennes Cost of Goods Sold Gross Profit Wages and Salaries Depreciation Expense Interest Expense Total operating expense Operating Profit Plus: Gain on Sale of Equipment Income before tax Income Tax Expense Net Income $50,000 160,000 210.000 420,000 350,000 (120,000) 230,000 $650,000 $85.000 12,000 8.000 105,000 120,000 300,000 125.000 $650.000 Dec. 31, 2011 $65.000 166,000 214,000 445.000 380,000 (152,000) 228,000 $673.000 $83,000 $15,000 9,000 107,000 90,000 350,000 126.000 $673,000 $800.000 450.000 350,000 200,000 48,000 7,000 255,000 95.000 5.000 100,000 30,000 $70.000 Additional information: During the year 2011, Alethea Inc. sold equipment costing $30,000 with $16,000 in Accumulated depreciation. Dividends were declared and paid to common stockholders during the year. No shares were repurchased during the year. No new debt was issued during 2011. Required: Prepare a Statement of Cash Flows for Alethea Inc. (using the schedule on the next page) for the year ended December 31, 2011. Show the cash flows from operations using the indirect method. Alethea, Inc. Statement of Cash Flows For the year ended December 31, 2011 Cash Flows from Operating Activities (CFO) Net CFO Cash Flows from Investing Activities (CFI) Net CFI Cash Flows from Financing Activities (CFF) Net CFF Net Change in Cash (Net CFO + Net CFI + Net CFF) mu

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