Financial and Managerial Accounting: P14-1A The comparative balance sheet of Oak and Tile Flooring
Financial and Managerial Accounting PROBLEM 14-1A Statement of cash flows-indirect method The comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007, is as follows: June 30, 2008 June 30, 2007 Assets Cash 34,700 23,500 Accounts receivable (net) 101,600 92,300 Inventories 146,300 142,100 Investments - 50,000 Land 145,000 - Equipment 215,000 175,500 Accumulated depreciation - Equipment (48,600) (41,300) 594,000 442,100 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) 100,900 95,200 Accrued expenses (operating expenses) 15,000 13,200 Dividends payable 12,500 10,000 Common stock, $1par 56,000 50,000 Paid-in capital in excess of par- common stock 220,000 100,000 Retained earnings 189,600 173,700 594,000 442,100 The following additional information was taken from the records of Oak and Tile Flooring Co.: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $45,000 cash. d. The common stock was issued for cash. e. There was a $65,900 credit to Retained Earnings for net income. f. There was a $50,000 debit to Retained Earnings for cash dividends declared. Instructions: Prepare a statement of cash flows using the indirect method of presenting cash flows from operating activities. Next, enter in key amounts from the spreadsheet as requested below.
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