The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are presented below. Required:
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The Farmer Company's comparative balance sheets for 2010 and 2011, and additional information, are presented below.
Required:
Using the indirect method, prepare a statement of cash flows for 2011 for Farmer Company.
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ASSETS Cash Accounts receivable Inventory Equipment Accumulated depreciation Prepaid expenses Land Building Total Assets FARMER COMPANY Comparative Balance Sheets December 31, 2011 $ 14,000 52,000 87,000 125,000 (42,000) 4,000 -0- 50,000 $290,000 December 31, 2010 $ 9,000 24,000 40,000 100,000 (34,000) 2,000 7,000 -0- $148,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Interest payable Taxes payable Note payable Bonds payable Common stock, $10 par Retained earnings Total Liabilities and Stockholders' Equity Additional 2011 information: Net income, $31,000 Sold land for gain of $3,000 Paid dividends of $8,000 Issued $50,000 stock to purchase building $ 25,000 8,000 37,000 37,000 75,000 75,000 33,000 $290,000 $ 14,000 6,000 11,000 32,000 50,000 25,000 10,000 $148,000 ASSETS Cash Accounts receivable Inventory Equipment Accumulated depreciation Prepaid expenses Land Building Total Assets FARMER COMPANY Comparative Balance Sheets December 31, 2011 $ 14,000 52,000 87,000 125,000 (42,000) 4,000 -0- 50,000 $290,000 December 31, 2010 $ 9,000 24,000 40,000 100,000 (34,000) 2,000 7,000 -0- $148,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Interest payable Taxes payable Note payable Bonds payable Common stock, $10 par Retained earnings Total Liabilities and Stockholders' Equity Additional 2011 information: Net income, $31,000 Sold land for gain of $3,000 Paid dividends of $8,000 Issued $50,000 stock to purchase building $ 25,000 8,000 37,000 37,000 75,000 75,000 33,000 $290,000 $ 14,000 6,000 11,000 32,000 50,000 25,000 10,000 $148,000
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FARMER COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31 2011 Cash generated from used in ... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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