Q1) Comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007, is given below:
Statement of cash ___________________________________ June 30, 2008 ________ June 30,2007
| Flows-indirect method |
Assests |
| Obj. 2 Cash......................................................... |
$34,700 |
$23,500 |
| Net cash flow from Accounts receivable (net)..................... |
101,600 |
92,300 |
| Operating activities, Inventories....................................... |
146,300 |
142,100 |
| $72,200 Investments................................................. |
0 |
50,000 |
| Equipment.................................................... |
215,000 |
175,000 |
| Accumulated depreciation....................... |
-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, $1 par...................................... |
56,000 |
50,000 |
| Paid-in capital in excess of par-common stock.. |
220,000 |
100,000 |
| Retained earnings................................................. |
189,000 |
173,700 |
| |
$594,000 |
$442,000 |
The following additional information was taken from 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
Create statement of cash flows, by using indirect method of presenting cash flows from operating activities.