Required prepare a statement of cash flows for the year


Problem - Financial information for Cole's Company at December 31, 2000 and for the year ended, presented in the schedule below:

                                                      December 31 Change

                                                      1999                    2000                      2000-1999

Debits

Cash                                               $15,000                $31,000                 $16,000

Accounts Receivable                         28,500                  26,500                   (2,000)

Inventory                                        12,400                   15,400                  3,000

PP&E                                               80,000                   86,000                  6,000

Accumulated Depreciation                 (20,000)                 (22,000)               (2,000)

Land                                                40,100                   61,100                 21,000

Total                                                $156,000                $198,000             $42,000

Credits

Accounts Payable                              10,000                   9,000                   (1,000)

Accrued Liabilities                              2,000                    7,000                   5,000

Notes Payable - Long Term                 20,000                  36,000                  16,000

Common Stock - No Par                     100,000                121,000                21,000

Retained Earnings                              24,000                  25,000                 1,000

Total                                                 $156,000              $198,000              $42,000

Additional Information:

1. Net Income was $6,000

2. Sold equipment for $4,000 cash that had cost $15,000. There was a $2,000 loss on the sale

3. Acquired land for $21,000, and issued common stock as a payment in full

Required: Prepare a statement of cash flows for the year ended December 31, 2000.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Required prepare a statement of cash flows for the year
Reference No:- TGS02420290

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)