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Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.

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Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below.;FULTON CORP.;COMPARATIVE BALANCE SHEET;AS OF DECEMBER 31, 2008 AND 2007;2008 2007;Cash $800 $600;Investments 0 200;Receivables 2,250 2,100;Inventory 1,600 1,200;Plant assets 1,600 1,200;Accumulated depreciation (600) (455);$5,650 $4,845;Accounts payable $750 $1,200;Accrued liabilities 330 520;Bonds payable 800 1,000;Capital stock 1,500 1,400;Retained earnings 2,270 725;$5,650 $4,845;FULTON COMPANY;INCOME STATEMENT;FOR THE YEAR ENDED DECEMBER 31, 2008;Sales $15,200;Cost of goods sold 10,400;Gross profit 4,800;Selling and administrative expenses 1,205;Income from operations 3,595;Other revenues and gains;Loss on sale of investments _ 50;Income before income tax 3,545;Income tax expense 1,400;Net income 2,145;Cash dividends 600;Income retained in business $1,545;Additional information;During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2008.;Instructions;Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

 

Paper#26761 | Written in 18-Jul-2015

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