Preview

Fin/200 Cash Flow Preparation

Satisfactory Essays
Open Document
Open Document
393 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fin/200 Cash Flow Preparation
Cash Flow Preparation
FIN/200
September 8, 2011
Axia College of University of Phoenix

WEEK 1 ASSIGNMENT – CASH FLOW PREPARATION 1. Prepare a statement of cash flows for the Widget Corporation. Follow the general procedures indicated in Table 2–10. ___________________________________________________________________
WIDGET CORPORATION
Income Statement
For the Year Ended December 31, 2008 Sales $2,200,000 Cost of goods sold 1,300,000 Gross profits 900,000 Selling and administrative expense 420,000 Depreciation expense 150,000 Operating income 330,000 Interest expense 90,000 Earnings before taxes 240,000 Taxes 80,000 Earnings after taxes 160,000 Preferred stock dividends 10,000 Earnings available to common stockholders $ 150,000 Shares outstanding 120,000 Earnings per share $ 1.25 Statement of Retained Earnings
For the Year Ended December 31, 2008 Retained earnings, balance, January 1, 2008 $500,000 Add: Earnings available to common stockholders, 2008 150,000 Deduct: Cash dividends declared and paid in 2008 50,000 Retained earnings, balance, December 31, 2008 $600,000
Comparative Balance Sheets
For 2007 and 2008 Year-End Year-End Assets 2007 2008
Current assets: Cash $ 70,000 $100,000 Accounts receivable (net) 300,000 350,000 Inventory 410,000 430,000 Prepaid expenses 50,000 30,000 Total current assets 830,000 910,000 Investments (long-term securities) 80,000 70,000 Plant and equipment 2,000,000 2,400,000 Less: Accumulated depreciation 1,000,000 1,150,000 Net plant and equipment 1,000,000 1,250,000 Total assets $1,910,000 $2,230,000
Liabilities and Stockholders’ Equity
Current liabilities: Accounts payable $ 250,000 $ 440,000 Notes payable 400,000 400,000 Accrued expenses 70,000 50,000 Total current liabilities 720,000 890,000
Long-term liabilities: Bonds payable, 2008 70,000

You May Also Find These Documents Helpful

  • Satisfactory Essays

    2. Select a sample of 51 vendors and request that they send a copy of their year-end statement directly to you. Examine the vendors’ statements and reconcile these to the accounts payable list.…

    • 198 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Ac550 Course Project

    • 579 Words
    • 3 Pages

    To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines…

    • 579 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Case 2 Bucks

    • 674 Words
    • 3 Pages

    relevant accounting literature and guidance on how to present the related cash flows in its…

    • 674 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Your boss, Mr. Kuklinski, believes that Southern California will soon run short of water. One of the ramifications, other than widespread rioting, is that there will be high demand for fresh, potable water. He is considering starting an iceberg transport company named “Iceman Inc.” to address this need and has asked you to help him analyze the project.…

    • 1264 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    3. Review the Financial Statements: Balance Sheet from Section 9, Lesson 2 of this course. Use the…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Cash Flow Analysis Paper

    • 935 Words
    • 4 Pages

    Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore, being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will provide an effective growth pattern to allow future financial security.…

    • 935 Words
    • 4 Pages
    Better Essays
  • Good Essays

    ACCT 550 Week 1 homework

    • 473 Words
    • 2 Pages

    To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines…

    • 473 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Tax Depreciation

    • 4777 Words
    • 20 Pages

    4.2 Discuss the firm's statement of cash flows, operating cash flow, and free cash flow.…

    • 4777 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    FIN200 Loan Scenarios

    • 481 Words
    • 2 Pages

    Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. The small chemical company needs to borrow $500,000.…

    • 481 Words
    • 2 Pages
    Good Essays
  • Good Essays

    homework

    • 648 Words
    • 6 Pages

    Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December 2010, based on the following comparative balance sheets.…

    • 648 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Bookkeeping Case Study

    • 769 Words
    • 4 Pages

    Incomes are accounted for on the salary proclamation in the period in which the money is gotten from clients.…

    • 769 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    **Assumimg that the cloaking equip is the only asset- that bothered me- I would like a schedule.**…

    • 716 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Af2108 Financial Accounting

    • 8065 Words
    • 33 Pages

    Dr. Sunny Sun, Poly U., Only for use in AF2108 Financial Accounting, Second Semester 2010/2011.…

    • 8065 Words
    • 33 Pages
    Powerful Essays
  • Satisfactory Essays

    Statement of Profit And Loss & Other Comprehensive Income for the year ended 30th June 2012…

    • 402 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    BB0012

    • 576 Words
    • 7 Pages

    Q.2 From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital…

    • 576 Words
    • 7 Pages
    Satisfactory Essays