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VANCO COMPANY_Cash flow statement

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Question;*Problem 12-11AThe comparative balance sheets for Vanco Company as of December 31 are presented below.VANCO COMPANYComparative Balance SheetsDecember 31Assets 2012 2011Cash $ 99,688 $ 65,970Accounts receivable 73,300 85,028Inventory 222,026 208,172Prepaid expenses 22,400 30,786Land 212,570 190,580Equipment 329,850 227,230Accumulated depreciation?equipment (65,970) (51,310)Buildings 293,200 293,200Accumulated depreciation?buildings (87,960) (58,640)Total $1,099,104 $991,016Liabilities and Stockholders? EquityAccounts payable $ 65,574 $ 52,776Bonds payable 439,800 439,800Common stock, $1 par 293,200 234,560Retained earnings 300,530 263,880Total $1,099,104 $991,016Additional information:1. Operating expenses include depreciation expense of $61,572.2. Land was sold for cash at book value.3. Cash dividends of $17,592 were paid.4. Net income for 2012 was $54,242.5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of$14,660 was sold for $11,728 cash.6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (Showamounts that decrease cash flow with either a - sign e.g. -15,0

 

Paper#44629 | Written in 18-Jul-2015

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