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Trent Company prepared the tabulation

Trent Company prepared the tabulation 


1
The following information is available for Greer Corporation for the year ended December 31, 2011:

	Collection of principal on long-term loan to a supplier	$15,000
	Acquisition of equipment for cash	10,000
	Proceeds from the sale of long-term investment at book value	22,000
	Issuance of ordinary shares for cash	25,000
	Depreciation expense	30,000
	Redemption of bonds payable at carrying (book) value	34,000
	Payment of cash dividends	14,000
	Net income	20,000
	Purchase of land by issuing bonds payable	40,000

In addition, the following information is available from the comparative statement of financial position for Greer at the end of 2010 and 2011:

	    2011		    2010	
	Prepaid insurance	  $  17,000	  $13,000
	Accounts receivable (net)	20,000	15,000
	Cash	    67,000	  14,000
	Total current assets	$104,000	$42,000

	Accounts payable	$  30,000	$19,000
	Salaries payable	      4,000	    7,000
	Total current liabilities	$  34,000	$26,000

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


2
Trent Company prepared the tabulation below at December 31, 2011.
Net Income		€340,000
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation expense, €35,000			
	Increase in accounts receivable, €50,000			
	Decrease in inventory, €13,000			
	Amortization of patent, €4,000			
	Increase in accounts payable, €5,600			
	Decrease in interest receivable, €7,000			
	Increase in prepaid expenses, €6,000			
	Decrease in income taxes payable, €1,500			
	Gain on sale of land, €5,000			
	Net cash provided (used) by operating activities			
Instructions
Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.




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06 Apr 2016

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  1. Genius

    Trent Company prepared the tabulation

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