Statement of Cash Flows

Only available on StudyMode
  • Download(s) : 253
  • Published : September 1, 2011
Open Document
Text Preview
Week 5-Check Point-Preparing a Statement of Cash Flows
Anderson, C.
Axia College of University of Phoenix
Due: August 7, 2011
ACC/230
Nathan McDaniel

In this paper I will show the Balance Sheet and Income Statement for Little Bit, Inc., and then I will draw up a Statement of Cash Flows for Little Bit, Inc., then I will give you an analysis of the Statement of Cash Flows that I have drawn up.

Balance Sheet for 2009
December 31,
2009 2008
Cash $ 40,000 $ 24,000
Accounts receivable (net) 48,000 41,500
Inventory 43,000 34,500
Prepaid expenses 19,000 15,000
Total Current Assets $ 150,000 $ 115,000
Plant and equipment $ 67,000 $ 61,000
Less accumulated depreciation (41,000) (23,000)
Plant and equipment (net) $ 26,000 $ 38,000
Long-term investments 90,000 89,000
Total Assets $ 266,000 $ 242,000
Accounts payable $ 13,000 $ 11,000
Accrued liabilities 55,000 71,000
Total Current Liabilities $ 68,000 $ 82,000
Long-term debt 25,000 8,000
Deferred taxes 4,000 3,500
Total Liabilities $ 97,000 $ 93,500
Common stock ($1 par) and additional paid-in capital 112,000 97,000 Retained earnings 57,000 51,500
Total Liabilities and Equity $ 266,000 $ 242,000

Income Statement for 2009

Sales $155,000
Cost of goods sold 83,000
Gross profit $ 72,000
Selling and administrative $45,700
Depreciation 18,000 63,700
Operating Profit $ 8,300
Interest expense 2,000
Earnings before tax $ 6,300
Tax expense 800
Net income $ 5,500

Statement of Cash Flows

Little Bit, Inc.

Statement of Cash Flows

For Year Ended December 31, 2009

Cash flow from operating activities
Net income $5,500
Non-cash expenses included in net income:
Depreciation 18,000
Deferred income taxes 500
Cash provided by (used for) current assets and liabilities
Accounts receivable (6,500)
Inventory (8,500)
Prepaid expenses (4,000)
Accounts payable 2,000
Accrued liabilities (16,000)
Net cash used by operating activities...
tracking img