Prepare a cash flow statement for XYZ Company, using the indirect method. Complete a cash flow/statement of
Question:
Prepare a cash flow statement for XYZ Company, using the indirect method. Complete a cash flow/statement of changes in financial position for XYZ Company for 2012, given the information below:
| XYZ Company Balance sheet December 31, 2012 | ||
| December 31 | ||
| Assets | 2012 | 2011 |
| Cash | 63,000 | 22,000 |
| Accounts receivable | 85,000 | 76,000 |
| Inventories | 180,000 | 189,000 |
| Land | 75,000 | 100,000 |
| Equipment | 260,000 | 200,000 |
| Accumulated amortization | (66,000) (underline) | (42,000) (underline) |
| Total | 597,000 (double underline) | 545,000 (double underline) |
| Liabilities and equity | ||
| Accounts payable | 34,000 | 47,000 |
| Bonds payable | 150,000 | 200,000 |
| Common shares | 214,000 | 164,000 |
| Retained earnings | 199,000 (underline) | 134,000 (underline) |
| Total | 597,000 (double underline) | 545,000 (double underline) |
Additional Information: Net income for 2012 was $125,000. Cash dividends of $60,000 were declared and paid. Bonds payable with a carrying value of $50,000 were redeemed for $50,000 cash. Common shares were issued for $50,000 cash. Land was sold at a gain of $5,000. Net sales for the year were $978,000.
"XYZ Company, a manufacturing firm, is seeking a comprehensive financial analysis for the fiscal year ending December 31, 2012. As part of this analysis, you are tasked with preparing a detailed cash flow statement using the indirect method and a comprehensive statement of changes in financial position,
outlining the changes in the company's financial standing over the course of the year and highlighting the impacts of key transactions and events.
Expert Answer:
Answer XYZ Company Cash Flow Statement for the Year Ended December 31 2012 Indirect Method Operating Activities Net income125000 Adjustments for Depre... View the full answer
