Condensed financial statements for Dragoon Enterprises follow.
(a) Calculate the amount of dividends Dragoon paid using the information given.
(b) Prepare a statement of cash flows using the indirect method.
Dragoon Enterprises Comparative Balance Sheets December 31, 2012 and 2011
|
|
2012
|
2011
|
|
Cash
|
$ 1,200
|
$ 850
|
|
Accounts receivable
|
1,750
|
1,200
|
|
Inventory
|
1,250
|
1,360
|
|
Plant and equipment
|
4,600
|
3,900
|
|
Accumulated depreciation
|
(1,200)
|
(1,100)
|
|
Long-term investments
|
970
|
1,110
|
|
Total Assets
|
8,570
|
7,320
|
|
Accounts payable
|
1,100
|
800
|
|
Accrued wages payable
|
250
|
350
|
|
Interest payable
|
70
|
120
|
|
Income tax payable
|
200
|
50
|
|
Bonds payable
|
1,100
|
1,400
|
|
Capital stock
|
1,000
|
930
|
|
Paid-in capital
|
400
|
70
|
|
Retained earnings
|
4,450
|
3,600
|
|
Total Liabilities and Equity
|
$ 8,570
|
$ 7,320
|
Income Statement for Year Ended December 31, 2012
|
Sales
|
$ 9,500
|
|
Cost of goods sold
|
6,650
|
|
Gross profit
|
2,850
|
|
Other expenses
|
|
|
Selling and administrative
|
1,200
|
|
Depreciation
|
100
|
|
Interest
|
150
|
|
Income tax
|
350
|
|
Net income
|
$ 1,050
|