# From the following information for Carter Corporation, prepare a statement of cash flows for the year ended

## Question:

From the following information for Carter Corporation, prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.

Amortization of patent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 Issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 Issuance of new bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000 Payment of dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,500 Purchase of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,200 Retirement of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Sale of land (includes$6,000 gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000

Decrease in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100

Increase in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Increase in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

Increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,700

Cash balance, January 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,800

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For

## Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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