Question Details

Prepare a statement of cash flows for the year 




1
A comparative statement of financial position for Mann Company appears below:
MANN COMPANY
Comparative Statement of Financial Position
	Dec. 31, 2011	Dec. 31, 2010
Assets
Equipment	€ 60,000                         	€32,000
Accumulated depreciation—equipment                                     	 (20,000)                       	 (14,000)
Long-term investments                                                                       	  -0-                        	18,000
Prepaid expenses                                                                           	6,000                           	9,000
Inventory                                                                                     	  25,000                         	18,000
Accounts receivable                                                                     	 18,000                         14,000
Cash	                  	     27,000	  10,000
	Total assets                                                                      	€116,000                      €87,000

Equity and Liabilities 
Share capital-ordinary	€ 40,000	€23,000
Retained earnings	    22,000	  10,000
Bonds payable	  37,000	47,000
Accounts payable	  17,000	  7,000
	Total equity and liabilities	€116,000	€87,000

 
Additional information:
1.	Net income for the year ending December 31, 2011 was €27,000.
2.	Cash dividends of €15,000 were declared and paid during the year.
3.	Long-term investments that had a cost of €18,000 were sold for €14,000.
4.	Sales for 2011 were €120,000.

Instructions
Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.



2
A comparative statement of financial position for Hartman Corporation is presented below:
HARTMAN CORPORATION
Comparative statement of financial position
	    2011		    2010	
Assets
Land	                                                                                                   	18,000	40,000
Equipment                                                                                           	70,000	60,000
Accumulated depreciation                                                               	   (20,000)         	         (13,000)
Prepaid insurance                                                                                	25,000                    17,000
Accounts receivable (net)                                                                    	70,000                    60,000
Cash		   46,000	   31,000
	Total Assets                                                                            	$209,000                $195,000

Equity and Liabilities
Share capital-ordinary	$140,000	$115,000
Retained earnings	    31,000	    55,000
Bonds payable	27,000	19,000
Accounts payable	    11,000	     6,000
	Total equity and liabilities	$209,000	$195,000

Additional information:
1.	Net loss for 2011 is $10,000.
2.	Cash dividends of $14,000 were declared and paid in 2011.
3.	Land was sold for cash at a loss of $4,000. This was the only land transaction during the year.
4.	Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5.	$22,000 of bonds were retired during the year at carrying (book) value.
6.	Equipment was acquired for ordinary shares. The fair value of the shares at the time of the exchange was $25,000.

Instructions
Prepare a statement of cash flows for the year ended 2011, using the indirect method.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help