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ACCT557 - Week 6 HW Questions

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Question;Problems;Financial data of Fancy Footwork Company for;2013 and 2012 are presented below.;FANCY FOOTWORK COMPANY;COMPARATIVE BALANCE SHEET;AS OF DECEMBER 31, 2013 AND 2012;2013 2012;Cash $ 260,000 $ 230,000;Receivables $ 156,000 $ 120,000;Inventory $ 180,000 $ 220,000;Plant assets $ 160,000 $ 135,000;Accumulated depreciation $ (80,000) $ (76,000);Long-term investments (held-to-maturity) $;80,000 $ 93,000;$ 756,000 $ 722,000;Accounts payable $ 135,000 $ 122,000;Accrued liabilities $ 30,000 $ 33,100;Bonds payable $ 135,000 $ 166,000;Common stock $ 180,000 $ 165,000;Retained earnings $ 276,000 $ 235,900;$ 756,000 $ 722,000;FANCY;FOOTWORK COMPANY;INCOME STATEMENT;For the year ended Dec 31, 2013;Sales 750000;Cost of Goods Sold 530000;Gross Margin 220000;Selling and administrative expenses 106000;Income from Operations 114000;Other revenues and gains;Gain on sale of investments 7000;Income before tax 121000;Income tax expense 48400;Net Income 72600;Additional information;During the year, $9000 of common stock was;issued in exchange for plant assets. No plant assets were sold in 2012. Cash;dividends were $32500.;Required;A) Prepare a statement of cash flows using the;indirect method;B) Prepare a statement of cash flows using the;direct method. (Do not prepare a reconciliation schedule.)

 

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