Michaels Company had available at the end of 2012 the information shown below. InstructionsPrepare a statement of
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Michaels Company had available at the end of 2012 the information shown below.
InstructionsPrepare a statement of cash flows for Michaels Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are classified asavailable-for-sale.
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MICHAELS COMPANY COMPARATIVE BALANCE SHEETS As OF DECEMBER 31, 2012 AND 2011 2012 2011 $ 10,000 $ 4,000 Cash Accounts receivable 20,500 22,000 42,000 3,000 2,100 1,000 12,950 30,000 35,000 12,000 Short-term investments Inventory Prepaid rent Prepaid insurance Supplies 900 750 Land 125,000 350,000 (105,000) 525,000 (130,000) 45,000 175,000 350,000 (87,500) 400,000 (112,000) 50,000 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents $910,600 $871,100 Total assets $ 22,000 5,000 5,000 10,000 60,000 400,000 20,303 240,000 $ 32,000 4,000 3,000 10,000 70,000 400,000 25,853 220,000 Accounts payable Income taxes payable Salaries and wages payable Short-term notes payable Long-tem notes payable Bonds payable Premium on bonds payable Common stock Paid-in capital in excess of par-common stock Retained earnings 25,000 123,297 17,500 88,747 Total liabilities and stockholders' equity $910,600 $871,100
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MICHAELS COMPANY Statement of Cash Flows For the Year Ended December 31 2012 Direct Method Cash flows from operating activities Cash receipts Cash rec...View the full answer
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