Question Details

Prepare a statement of cash flows for Meenan Company 


1
The financial statements of Meenan Company appear below:
MEENAN COMPANY
Comparative Statement of Financial Position
December 31
	    2011		    2010	
Assets

Property, plant, and equipment	€ 50,000	€ 78,000
Accumulated depreciation                                                                    	  (20,000)	   (24,000)
Merchandise inventory	30,000	15,000
Accounts receivable	26,000	34,000
Cash	    38,000	    23,000
	Total	€124,000	€126,000

Equity and Liabilities
Share capital-ordinary	€ 41,000	€ 24,000
Retained earnings	    46,000	    38,000
Bonds payable	7,000	33,000
Accounts payable	  17,000	  23,000
Income taxes payable	    13,000	      8,000
	Total	€124,000	€126,000

MEENAN COMPANY
Income Statement
For the Year Ended December 31, 2011
Sales		€400,000
Cost of goods sold		  280,000
Gross profit		120,000
Operating expenses		    46,000
Income from operations		74,000
Interest expense		      4,000
Income before income taxes		70,000
Income tax expense		    21,000
Net income		€  49,000

The following additional data were provided:
1.	Dividends declared and paid were €41,000.
2.	During the year, equipment was sold for €15,000 cash. This equipment cost €28,000 originally and had a book value of €15,000 at the time of sale.
3.	All depreciation expense is in the operating expenses.
4.	All sales and purchases are on account.
5.	Accounts payable pertain to merchandise suppliers.
6.	All operating expenses except for depreciation were paid in cash.
Instructions
Prepare a statement of cash flows for Meenan Company using the direct method.




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