Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2014
December 31
2013 2014
Cash $42,000 $75,000
Accounts receivable (net) 84,000 144,200
Inventory 168,000 206,600
Land 58,800 21,000
Equipment 504,000 789,600
TOTAL $856,800 $1,236,400
Accumulated depreciation $84,000 $115,600
Accounts payable 50,400 86,000
Notes payable - short-term 67,200 29,400
Notes payable - long-term 168,000 302,400
Common stock 420,000 487,200
Retained earnings 67,200 215,800
TOTAL $856,800 $1,236,400
Additional data for 2014:
1. Net income was $240,000, see income statement below.
2. Depreciation was $31,600.
3. Land was sold at its original cost.
4. Dividends were paid.
5. Equipment was purchased for $184,000 cash.
6. A long-term note for $101,000 was used to pay for an equipment purchase.
7. Common stock was issued
8. Company issued $33,400 long-term note payable.
Income Statement
For the year ended December 31, 2014
Sales revenue....................................................$1,200,000
Cost of goods sold.................................................480,000
Gross profit.........................................................720,000
Selling and administrative expenses..............................360,000
Pre-tax operating income..........................................340,000
Income taxes.........................................................120,000
Net income.........................................................$240,000
Prepare the statement of cash flow using the indirect method
Prepare the statement of cash flow using the direct method