Problem 12-3 Statement of Cash Flows - Direct Method

Problem 12-4 Statement of Cash Flows - Indirect Method

Other information is as follow. Dividends of $ 60, 000 were declared and paid during the year. Operating expenses include $50,000 of depreciation, Land and plant and equipment were acquired for cash. Cash. also was received from additional bank loans. The president has asked you some questions about the year's results. She is very impressed with the profit margin of 18% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing, bank loan is that the company maintain a minimum cash balance of $50,000. Prepare a statement of cash flows for 2012 using the direct method in the Operating Activities section. Other information is as follow. Dividends of $ 60, 000 were declared and paid during the year. Operating expenses include $50,000 of depreciation, Land and plant and equipment were acquired for cash. Cash. also was received from additional bank loans. The president has asked you some questions about the year's results. She is very impressed with the profit margin of 18% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing, bank loan is that the company maintain a minimum cash balance of $50,000. Prepare a statement of cash flows for 2012 using the direct method in the Operating Activities