Your STUDENT NAME Company
Comparative Balance Sheets
At December 31,
	Year 2			Year 1
Assets
Current Assets
Cash		$  60,000			$  71,500
Investment		30,000			55,000
Accounts receivable	$152,000			$136,000
Less Allowance for uncollectible accounts	6,000	146,000		3,000	133,000
Inventory		118,000			84,000
Total Current Assets		$354,000			$343,500
Property, Plant, & Equipment
Land		$  50,000			$  15,000
Buildings	$160,000			$160,000
Less Accumulated depreciation on Buildings	40,000	120,000		32,000	128,000
Equipment	60,000			41,500
Less Accumulated depreciation: Equipment	24,000	36,000		18,500	23,000
Total Property, Plant, & Equipment		206,000			166,000
Total Assets		$560,000			$509,500
Liabilities & Stockholder's Equity
Liabilities
Accounts payable	$102,000			$   95,000
Income taxes payable	13,000			8,000
Long term notes payable	65,000			80,000
Total liabilities		$180,000			$183,000
Stockholder's Equity
Common stock	$295,000			$236,500
Retained earnings	85,000			90,000
Total Stockholder's Equity		$380,000			$326,500
Total Liabilities & Stockholder's Equity		$560,000			$509,500

Your STUDENT NAME Company
Income Statement
For the year ending Dec. 31, Year 2
Sales		$750,000
Less: Cost of Goods Sold		480,000
Gross profit		270,000
Operating Expenses		145,000
Income from Operations		125,000
Other Revenue & Expenses
Gain on sale of investments	$  7,000
Loss on sale of equipment	(4,000)	3,000
Income before taxes		128,000
Income tax expense		52,000
Net Income		$   76,000

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1) Use the Comparative Balance Sheets & the Income Statement along with the additional information below to prepare a Statement of Cash Flows using the Direct Method. Place your answer on the Direct Method tab of this spreadsheet. 2) Use the Comparative Balance Sheets & the Income Statement along with the additional information below to prepare a Statement of Cash Flows using the Indirect Method. Place your answer on the Indirect Method tab of this spreadsheet. 3) Use the Excel formula function for all computations. 1) Use the Comparative Balance Sheets & the Income Statement along with the additional information below to prepare a Statement of Cash Flows using the Direct Method. Place your answer on the Direct Method tab of this spreadsheet. 2) Use the Comparative Balance Sheets & the Income Statement along with the additional information below to prepare a Statement of Cash Flows using the Indirect Method. Place your answer on the Indirect Method tab of this spreadsheet. 3) Use the Excel formula function for all computations.

Answer rating: 100% (QA)

Cash Flow Statement Indirect Method Particulars Amount Amoun... View the full answer