60.1K

Verified Solution

Link Copied!

B. Selected financial statement information and additional data for Stanislaus Co. is presented below. Prepare a statement of cash flows for the year ending December 31, 2016

December 31

2015 2016

Cash.......................................................... $62,000 $85,000

Accounts receivable (net)............................ 64,000 144,200

Inventory................................................... 168,000 206,600

Land.......................................................... 58,800 21,000

Equipment................................................. 504,000 789,600

TOTAL............................................ $856,800 $1,246,400

Accumulated depreciation......................... $84,000 $115,600

Accounts payable....................................... 50,400 86,000

Notes payable - short-term.......................... 67,200 19,400

Notes payable - long-term........................... 168,000 322,400

Common stock........................................... 420,000 477,200

Retained earnings....................................... 67,200 225,800

TOTAL............................................ $856,800 $1,246,400

Additional data for 2016:

1. Net income is shown on the income statement below.

2. Depreciation was $31,600.

3. Land was sold at its original cost.

4. Dividends were paid.

5. Equipment was purchased.

6. A long-term note was issued.

7. Common stock was issued

8. Company issued common stock.

Income Statement

For the year ended December 31, 2016

Sales revenue.. $1,200,000

Cost of goods sold 480,000

Gross profit 720,000

Selling and administrative expenses.. 360,000

Pre-tax operating income 360,000

Income taxes 120,000

Net income$240,000

A. Prepare a balance sheet in proper form.

B. Prepare the statement of cash flow using the indirect method

Answer & Explanation Solved by verified expert

See Answer