CF Unit6 P12-5 XS Supply Company
P12-5 (Supplement B) Preparing a Statement of Cash
Flows with Gain on Sale of Equipment (Indirect Method) LO12-2, 12-4, 12-6
XS Supply Company is developing its annual
financial statements at December 31, 2014. The statements are complete except
for the statement of cash flows. The completed comparative balance sheets and
income statement are summarized:
|
|
2014
|
2013
|
|
Balance
sheet at December 31
|
||
|
Cash
|
$ 34,000
|
$ 29,000
|
|
Accounts
receivable
|
35,000
|
28,000
|
|
Merchandise
inventory
|
41,000
|
38,000
|
|
Property
and equipment
|
121,000
|
100,000
|
|
Less:
Accumulated depreciation
|
(30,000)
|
(25,000)
|
|
|
$ 201,000
|
$ 170,000
|
|
Accounts
payable
|
$ 36,000
|
$ 27,000
|
|
Wages payable
|
1,200
|
1,400
|
|
Note
payable, long-term
|
38,000
|
44,000
|
|
Contributed
capital
|
88,600
|
72,600
|
|
Retained
earnings
|
37,200
|
25,000
|
|
|
$ 201,000
|
$ 170,000
|
|
Income
statement for 2014
|
|
|
Sales
|
$ 120,000
|
|
Gain on sale of equipment
|
1,000
|
|
Cost
of goods sold
|
70,000
|
|
Other
expenses
|
38,800
|
|
Net
income
|
$ 12,200
|
Additional Data:
a. Bought equipment for cash, $31,000.
Sold equipment with original cost of $10,000,
accumulated depreciation of $7,000, for $4,000 cash.
b. Paid $6,000 on the long-term note payable.
c. Issued new shares of stock for $16,000 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $12,000;
wages, $13,000; taxes, $6,000; and other, $7,800.
f. Accounts payable includes only inventory
purchases made on credit. Because there are no liability accounts relating to
taxes or other expenses, assume that
these expenses were fully paid in cash.
Required:
1 Prepare the statement of cash flows for the year
ended December 31, 2014, using the indirect method. (List
cash outflows as negative amounts.)
Possible input areas are shaded.
File name: CF Unit6 P12-5 XS Supply Company.xls File type: .xls PRICE: $8
