Use above information to compute statement of cash flows


Sila Company

Balance Sheet

For Year Ended December 31, 2014

 

Assets:                                                                                  Year2                         Year 1

Current Assets

Cash                                                                                       60,000                      60,000

Investment                                                                           30,000                      55,000

Accounts Receivable                                 152000                            136000             

Less: Allowance for uncollectible acc.      6000          146,000        3000  133,000

Inventory                                                                             118,000                       84,000

Total current assets                                                         354,000                    343,500

Property, Plant, Equipment

Land                                                                                         50,000                       15,000

Buildings                               160,000                                                   160,000

Less: Acc. Depreciation       40,000                                120,000       32,000              128,000

Equipment                           60,000                                                        41,500

Less: acc. Depreciation     24,000                                    36,000       18,500      23,000

Total property, plant, & Equipment                                               206,000     166,000

Total assets                                                                                             560,000      509,500

 

Liabilities & Stockholder's Equity

Liabilities

Account Payable                                                    102,000                                    95,000

Income taxes payable                                             13,000                                  8,000

Long term notes payable                                       65,000                                80,000

Total liabilities                                                       180,000                                183,000

Stockholder's Equity

Common stock                                                        295,000                                236,500

Retained Earnings                                                    85,000                                  90,000

Total stockholder's Equity                                 380,000                                326,500

Total liabilities & stockholder's equity         560,000                                509,500

Additional for year 2:

- None of the accounts receivable were written off.

- CFO sold investments in year 2 worth

- Asset acquisitions manager sold equipment she had purchased for: 20,000

- When the equipment was sold, it had already been depreciated by: 40%

- Board of directors declared and paid dividends in year 2.

- Common stock was issued in exchange for a plot of land the company planned to develop in the future.

Operating Expenses:

- Uncollectible account expense:

- Depreciation Expense: Buildings:

- Depreciation Expense: equipment

Sila Company

Income Statement

For the Year Ended Dec. 31,2014

 

Sales:                                                                                     750,000

Less: COGS:                                                                          480,000

Gross profit:                                                                                    270,000

Operating Expenses:                                                         145,000

Income from operations:                                                 125,000

Other revenue & Expenses:       

Gain on sale of investments:                   7,000

Loss on sale of equipment:                      4,000                 3,000

Income before taxes:                                                        128,000

Income tax expense:                                                            52,000

Net income:                                                                                       76,000

Use above information to compute Statement of Cash Flows: direct and indirect method on Excel spreadsheet.

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