Question: The comparative balance sheets for 2011 and 2010 and the 181291

The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also.

Additional information from the accounting records:
a. During 2011, $5 million of customer accounts were written off as uncollectible.
b. Investment revenue includes National Intercable Company's $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee.
c. A long-term investment in bonds, originally purchased for $30 million, was sold for $35 million.
d. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million.
e. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by a tornado. Some undamaged parts were sold for $3 million.
f. A building was acquired by a seven-year capital lease; present value of lease payments, $80 million.
g. $130 million of bonds were retired at maturity.
h. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par.
i. Shareholders were paid cash dividends of $30 million.

1. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2011.
2. Prepare the statement of cash flows. (A reconciliation schedule is not required.)

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  • CreatedJuly 11, 2013
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