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Cash Flow Statement Assignment No. 1

The document provides financial information for Juarez Company for 2012, including comparative balance sheets, an income statement, and additional transaction details. It asks to prepare a statement of cash flows using the indirect method based on this information.

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Mahmoud Ibrahim
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72 views2 pages

Cash Flow Statement Assignment No. 1

The document provides financial information for Juarez Company for 2012, including comparative balance sheets, an income statement, and additional transaction details. It asks to prepare a statement of cash flows using the indirect method based on this information.

Uploaded by

Mahmoud Ibrahim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cash flow Statement Assignment

Exercise One:

The information below was related to 2012 for Juarez Company.


Juarez Company
Comparative Balance Sheets
December 31
Assets 2012 2011
Cash $191,000 $159,000
Accounts receivable 12,000 15,000
Inventory 170,000 160,000
Prepaid expenses 6,000 8,000
Land 140,000 80,000
Equipment 160,000 –0–
Accumulated depreciation—equipment (16,000) –0–
Total $663,000 $422,000

Liabilities and Stockholders’ Equity


Accounts payable $ 52,000 $ 60,000
Accrued expenses payable 15,000 20,000
Income taxes payable 12,000 –0–
Bonds payable 130,000 –0–
Common stock 360,000 300,000
Retained earnings 94,000 42,000
Total $663,000 $422,000
Juarez Company
Income Statement
For the Year Ended December 31, 2012
Sales revenue $975,000
Cost of goods sold $660,000
Operating expenses (excluding depreciation) 176,000
Depreciation expense 18,000
Loss on sale of equipment 1,000
(855,000)
Income before income taxes 120,000
Income tax expense (36,000)
Net income $ 84,000
Additional information:

1. In 2012, the company declared and paid a $32,000 cash dividend.

2. Bonds were issued at face value for $130,000 in cash.

3. Equipment costing $180,000 was purchased for cash.

4. Equipment costing $20,000 was sold for $17,000 cash when the book value of

the equipment was $18,000.

5. Common stock of $60,000 was issued to acquire land.

Instructions:

Prepare a statement of Cash Flows under In-direct Method.

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