cash flow 405197 | Homework Solutions
The comparative balance sheets for Gould Company as of December 31 are presented below.
| GOULD COMPANY | |||||
| Comparative Balance Sheets | |||||
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| Assets |
2011 |
2010 |
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| Cash | $ 71,290 | $ 44,830 | |||
| Accounts receivable | 44,040 | 62,020 | |||
| Inventory | 151,350 | 141,860 | |||
| Prepaid expenses | 14,990 | 21,460 | |||
| Land | 104,900 | 130,260 | |||
| Equipment | 228,190 | 154,960 | |||
| Acc. depr. equipment | (44,620) | (35,020) | |||
| Building | 199,840 | 199,840 | |||
| Acc. depr. building |
(60,390) |
(39,940) |
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| Total |
$709,590 |
$680,270 |
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| Liabilities and Stockholders’ Equity | |||||
| Accounts payable | $ 48,140 | $ 39,560 | |||
| Bonds payable | 259,810 | 299,710 | |||
| Common stock, $1 par | 199,800 | 159,900 | |||
| Retained earnings |
201,840 |
181,100 |
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| Total |
$709,590 |
$680,270 |
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Additional information:
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Operating expenses include depreciation expense of $41,790 and charges from prepaid expenses of $6,470.
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Land was sold for cash at book value.
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Cash dividends of $16,160 were paid.
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Net income for 2011 was $36,900.
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Equipment was purchased for $94,560 cash. In addition, equipment costing $21,330 with a book value of $9,590 was sold for $6,230 cash.
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Bonds were converted at face value by issuing 39,900 shares of $1 par value common stock.
Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, 17, 5, 1. If amount decreases cash flow, use either a negative sign preceding the number eg. 45 or parentheses eg (45).)
