Mortonson Company has not yet prepared a formal statement of cash flows for the 2010 fiscal year.
Question:
Mortonson Company has not yet prepared a formal statement of cash flows for the 2010 fiscal year. Comparative statements of financial position as of December 31, 2009 and 2010, and a statement of income and retained earnings for the year ended December 31, 2010, are presented below.
Instructions
Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goodssold.
Transcribed Image Text:
MORTONSON COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2010 ($000 oMITTED) $3,800 Sales Expenses $1,200 725 75 80 Cost of goods sold Salaries and benefits Heat, light, and power Depreciation Property taxes Patent amortization Miscellaneous expenses Interest 25 10 30 2,164 1,636 818 818 310 1,128 600 528 Income before income taxes Income taxes Net income Retained earnings Jan. 1, 2010 Share dividend declared and issued Retained earningsDec. 31, 2010 MORTONSON COMPANY COMPARATIVE STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31 ($000 OMITTED) 2010 $150 910 200 105 720 Assets 2009 Land Buildings and equipment Accumulated depreciation Patents (less amortization) Inventory Equity investments (non-trading) Accounts receivable Cash S 70 600 (120) 130 560 50 500 100 780 $2,808 $1,890 Total assets Equity and Liabilities Retained earnings $1,300 528 $ 700 310 Share capital-ordinary Total equity Long-term notes payable -due 2012 Accounts payable Income taxes payable Notes payable 1,828 200 420 40 320 1,010 200 330 30 320 880 Total liabilities 980 Total equity and liabilities $2,808 $1,890
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Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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