The following information was taken from Lamberson Company’s accounting records:
Additional information for the year:
b. Dividends declared and paid totaled $700.
c. On January 1,2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.
d. Long term nonmarketable investments that cost $1,600 were sold for $2,300.
f. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the year. Equipment with a cost of $2,000 and a book value of $300 was sold for $100. The company uses one Accumulated Depreciation account for all depreciable assets.
g. Equipment was purchased at a cost of $16,200.
h. The 12% bonds payable were issued on August 31,2016, at 97. They mature on August 31, 2026. The company uses the straight line method to amortize the discount.
i. Taxable income was less than pretax accounting income, resulting in a $396 increase in deferred taxes payable.
j. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $3,800 fair value at year-end by adjusting the related allowance account
1. Prepare a spreadsheet to support Lamberson Company’s 2016 statement of cash flow's.
2. Prepare the statement of cash flows.
3. Next Level Compute the cash flow from operations to sales ratio and the profit margin ratio for 2016. What is the primary' reason for the difference in the results of the ratios?

  • CreatedOctober 05, 2015
  • Files Included
Post your question