The 2010 and 2009 comparative balance sheets and 2010 income statement of King Supply Corp. follow: King
Question:
King Supply had no noncash investing and financing transactions during 2010. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.
Requirements
1. Prepare the 2010 statement of cash flows, formatting operating activities by using the indirect method.
2. How will what you learned in this problem help you evaluate aninvestment?
Transcribed Image Text:
King Supply Corp. Comparative Balance Sheets December 31, 2010 Increase 2009 (Decrease) Current assets: Cash and cash equivalens17,600 Accounts receivable Inventories.... Prepaid expenses 5,000 12,600 4,500 44,500 1,000 79,100 7,500 11,600 2,100 6000 (3,900) Plant assets: Land Equipment, net 69,100 21,900 47,200 49,200 53,100 Current liabilities: Accounts payable.. Salary payable... 35,800 25,600 S 10,200 22,000 5,600 6,400 22,900 24,20 (1,300) Long-term liabilities: Notes payable 50,000 37,000 13,000 Stockholders' equity: Common stock, no-par Retained earnings 88,600 64,300 24,300 47.200 27400 19.800 Total liabilities and stockholders' equity. $266,500 $194,100 $72.400 King Supply Corp. Income Statement Year Ended December 31, 2010 Revenues: Sales revenue. $445,000 Expenses: Cost of goods soldS185,100 Salary expense Depreciation expense.17,400 Other operating expense Interest expense Income tax expense 76,400 49,800 24,800 29,500 Total expenses 383,000 S 62,000
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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