Acc206 Principles of Accounting: E14-17 The income statement of Minerals Plus, Inc. follows

Acc206 Principles of Accounting

E14-17 Preparing the statement of cash flows - indirect method
The income statement of Minerals Plus, Inc. follows:
Minerals Plus, Inc.
Income Statement
Year Ended September 30,2012
Revenues:
Service revenue 235,000
Expenses:
Cost of goods sold 97,000
Salary expense 57,000
Depreciation expense 26,000
Income tax expense 4,000 184,000
Net income 51,000

Additional data follow:
a. Acquisition of plant assets is $118,000. Of this amount $100,000 is paid in cash and $18,000 by signing a note payable.
b. Cash receipts from sale of land totals $28,000. There was no gain or loss.
c. Cash receipts from issuance of common stock total $29,000.
d. Payment of note payable is $18,000.
e. Payment of dividends is $8,000.
f. From the balance sheet:
Sept. 30
2012 2011
Current Assets:
Cash 30,000 8,000
Accounts receivable 41,000 59,000
Inventory 97,000 93,000
Current Liabilities:
Accounts payable 30,000 17,000
Accrued liabilities 11,000 24,000

Requirement:
1. Prepare Mineral Plus's statement of cash flows for the year ended September 30, 2012, using the indirect method. Include a separate section for noncash investing and financing activities.
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