Assignment
Instructions:
1. Prepare a cash flow statement using the information below. Use BOTH the direct and indirect method to prepare the Operating Activities section (i.e., I expect to see 2 Operating Activities sections, 1 Investing, and 1 Financing).
2. Each cash flow item in the statement should be appropriately labeled (use the naming conventions used on the text).
3. Show all calculations / work used to prepare the 3 different sections of the cash flow statement (this should be on a separate sheet). You will not receive credit for the assignment if you do not show all work for each number.
4. Work should be neat and clearly labeled so that I can follow the calculations corresponding to the cash flow item within the cash flow statement sections.
5. Be sure to clearly label and cross-reference each cash flow item on the statement to the calculations that correspond to that cash flow item. E.g., if you have "cash received from customers" in your cash flow statement, label this item as "A" or "1" in the margin and also label the calculations that correspond to this number as "A" or "1" on your calculations worksheet. In this way, I can easily find the calculations you performed for each item on your cash flow statement. .
6. Appropriately label the cash flow statement and the related sections - follow the format used in the text.
7. This is not a group assignment. Individual work is expected. No points will be given if submitted assignment is not your own work.
Assignment -
In addition to the financial statements presented on the next pages, also find the notes below. Use information as necessary from the notes and the financial statements to construct the cash flow statement for the company for the year ending December 31, 2012.
Notes:
1. All equipment/furniture purchases are made using cash. There were no disposals during the year.
2. Land that originally cost $14,000 was sold for $9,800.
3. Short-term investments are not classified as a cash equivalent and are non-trade related.
Any purchases or sales are made in cash.
4. Long-term notes payable and bonds payable are shown in the balance sheet at their face value and indicate repayments or issuances as appropriate.
5. Cash dividends were paid to shareholders during the year.
Attachment:- Assignment.rar