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Kazaam Company, a merchandiser, recently completed...




Kazaam Company, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company?s balance sheets and income statement follow. KAZAAM COMPANY Comparative Balance Sheets December 31, 2011 and 2010 2011 2010 Assets Cash $ 49,800 $ 73,500 Accounts receivable 65,800 59,000 Merchandise inventory 276,000 252,500 Prepaid expenses 1,500 1,800 Equipment 157,500 106,000 Accum. depreciation?Equipment (36,750) (46,000) Total assets $ 513,850 $ 446,800 Liabilities and Equity Accounts payable $ 68,300 $ 114,000 Short-term notes payable 10,000 7,000 Long-term notes payable 65,000 48,750 Common stock, $5 par value 153,000 147,000 Paid-in capital in excess of par, common stock 18,000 0 Retained earnings 199,550 130,050 Total liabilities and equity $ 513,850 $ 446,800 KAZAAM COMPANY Income Statement For Year Ended December 31, 2011 Sales $ 583,500 Cost of goods sold 280,000 Gross profit 303,500 Operating expenses Depreciation expense $ 20,000 Other expenses 134,000 154,000 Other gains (losses) Loss on sale of equipment 5,750 Income before taxes 143,750 Income taxes expense 24,250 Net income $ 119,500 Additional Information on Year 2011 Transactions a. The loss on the cash sale of equipment was $5,750 (details in b). b. Sold equipment costing $46,500, with accumulated depreciation of $29,250, for $11,500 cash. c. Purchased equipment costing $98,000 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $3,000 cash by signing a short-term note payable. e. Paid $51,750 cash to reduce the long-term notes payable. f. Issued 1,200 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,000. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) KAZAAM COMPANY Statement of Cash Flows For Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities: Net cash operating activities $ Cash flows from investing activities Net cash investing activities Cash flows from financing activities Net cash financing activities $ Cash balance at beginning of 2011 Cash balance at end of 2011 $,Please take a look at the pic attached. The numbers are not matching. Thanks.,Enter your follow up question here...,sENT THE EXCEL SHEET ATTACHED.,Excel sheet attached.


Paper#7443 | Written in 18-Jul-2015

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