E13-8 Taguchi Company - Indirect method
E13-8 Here are comparative balance sheets for Taguchi
Company.
TAGUCHI COMPANY
Comparative Balance Sheets
31-Dec
Assets 2011 2010
Cash $73,000 $22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000 170,000 189,000
Land 75,000 100,000 75,000 100,000
Equipment 260,000 200,000 260,000 200,000
Accumulated depreciation
(66000) (32000)
Total $597,000
$555,000
Liabilities and Stockholders’ Equity
Accounts payable $39,000
$47,000
Bonds payable 150,000 200,000
Common stock ($1 par)
216,000 174,000
Retained earnings 192,000 134,000
Total $597,000
$555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for
cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at
cost.
Instructions
Prepare a statement of cash flows for 2011 using the
indirect method.
TUTORIAL PREVIEW
Prepare a statement of cash flows for 2011 using the indirect method.|
TAGUCHI COMPANY
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Statement of Cash Flows
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For the Year Ended December 31,
2011
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Cash flows from operating activities :
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Net income
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$103,000
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Adjustments to reconcile net income
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to net cash provided by operating activities
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Depreciation expense
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$34,000
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Increase in accounts receivable
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-9,000
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File name: E13-8 Taguchi.xls File type: .xls PRICE: $5
