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Peoria Corp just completed another successful year as indicated by the following income statement




Peoria Corp just completed another successful year as indicated by the following income statement;Problem 12-3 Statement of Cash Flows (Direct Method);Peoria Corp. just completed another successful year, as indicated by the following income statement;For the Year Ended;December 31, 2012;Sales revenue $1,250,000;Cost of goods sold 700,000;Gross profit $ 550,000;Operating expenses 150,000;Income before interest and taxes $ 400,000;Interest expense 25,000;Income before taxes $ 375,000;Income tax expense 150,000;Net income $ 225,000;Presented here are comparative balance sheets;December 31;2012 2011;Cash $ 52,000 $ 90,000;Accounts receivable 180,000 130,000;Inventory 230,000 200,000;Prepayments 15,000 25,000;Total current assets $ 477,000 $ 445,000;Land $ 750,000 $ 600,000;Plant and equipment 700,000 500,000;Accumulated depreciation (250,000) (200,000);Total long-term assets $1,200,000 $ 900,000;Total assets $1,677,000 $1,345,000;Accounts payable $ 130,000 $ 148,000;Other accrued liabilities 68,000 63,000;Income taxes payable 90,000 110,000;Total current liabilities $ 288,000 $ 321,000;Long-term bank loan payable $ 350,000 $ 300,000;Common stock $ 550,000 $ 400,000;Retained earnings 489,000 324,000;Total stockholders equity $1,039,000 $ 724,000;Total liabilities and stockholders equity $1,677,000 $1,345,000;Other information is as follows;a. Dividends of $60,000 were declared and paid during the year.;b. Operating expenses include $50,000 of depreciation.;c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.;Required;Prepare statement of cash flows for 2012 using direct method in the operating activities section;Problem 12-4 Statement of Cash Flows Indirect Method;Refer to all of the facts in Problem 12-3


Paper#29233 | Written in 18-Jul-2015

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