Final Exam Take Home Problem (20 points) Based on the information provided below, prepare the statement of cash flows for the…
Final Exam Take Home Problem (20 points)
Based on the information provided below, prepare the statement of cash flows for the Gulp-it-Down Coffee Co.
Gulp-it-Down Coffee Co. Comparative Balance Sheet For the Year Ended December 31, 2012 |
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|
2012 |
2011 |
Assets |
|
|
Cash |
140,000 |
160,000 |
Accounts Receivables |
400,000 |
380,000 |
Inventory |
480,000 |
420,000 |
Fixed Assets (net of accumulated Depreciation) |
1,860,000 |
1,720,000 |
Less: Accumulated Depreciation |
(1,000,000) |
(900,000) |
Total |
1,880,000 |
1,780,000 |
|
|
|
Liabilities & Owner’s Equity |
|
|
Accounts Payable |
240,000 |
260,000 |
Accrued expense |
120,000 |
100,000 |
Bonds Payable |
780,000 |
720,000 |
Capital Stock |
420,000 |
420,000 |
Retained Earnings |
320,000 |
280,000 |
Total |
1,880,000 |
1,780,000 |
Additional Information:
(1.) Net income for the year amounted to $60,000, and cash dividends were declared and paid in the amount of $20,000.
(2.) Gulp-it-Down Coffee Co.’s only noncash expense was depreciation Expense which totaled $100,000.
(3.) The company purchased plant assets for $140,000.
(4.) Bonds payable in the amount of $60,000 were issued during the year.