Smith Corporation had the following comparative balance sheet information for 2012 and 2013 Account 2013 2012 Cash $ 60,000 $ 56,000 Accounts Receivable 96,000 100,000 Inventory 316,000 312,000 Prepaid Insurance 20,000 16,000 Property, Plant Equipment 140,000 120,000 Accumulated Depreciation (28,00...

CASH FLOW STATEMENT Cash flow from operating activity Net income Adjust ...

Smith Corporation had the following comparative balance sheet information for 2012 and 2013: Account 2013 2012 Cash

Question:

Smith had the following comparative information for 2012 and 2013: Account 2013 2012 Cash $ 60,000 $ 56,000 96,000 100,000 Inventory 316,000 312,000 Prepaid Insurance 20,000 16,000 Property, Plant & Equipment 140,000 120,000 Accumulated Depreciation (28,000) (20,000) Total $ 604,000 $ 584,000 $ 28,000 $ 36,000 Bonds Payable 180,000 240,000 280,000 240,000 Retained Earnings 116,000 68,000 Total $ 604,000 $ 584,000 The company reported net income for 2013 of $80,000. No property, plant & equipment was disposed of during the year. Smith paid $32,000 in cash dividends during 2013. Smith uses the indirect method to prepare the statement of cash flows. Required: Prepare and explain Smith's Statement of Cash Flows for 2013.
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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...