Q.42). P13-36B Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770
Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.
Barton Publication Company, Inc.
Balance Sheet
As of March 31, 2010 and 2009
2010
2009
Increase (Decrease)
Current assets :
Cash
$ 55,600
$14.700
$40,900
Accounts receivable
51,400
53,300
(1,900)
Inventories
65,400
59,700
5,700
Prepaid expenses
3,700
5,100
(1,400)
Long-term investment
10,000
6,800
3,200
Equipment, net
71,700
70,200
1,500
Land
35,500
97,000
(61,500)
Total assets
293,300
$306,800
(61,500)
Current liabilities
Note payable, short-term
$43,200
$48,900
$(5,700)
Account payable
4,300
3,500
800
Income tax payable
13,700
15,500
(1,800)
Salary payable
9,200
12,400
(3,200)
Interest payable
8,200
7,400
800
Accrued liabilities
2,900
3,400
(500)
Long-term note payable
48,900
93,100
(44,200)
Common stock
69,600
61,700
7,900
Retained earnings
93,300
60,900
32,400
Total liabilities and equity
$293,300
$306,800
$(13,500)
Selected transaction data for the year ended March 31, 2010, include the following :
Net income, $77,000
Paid long-term note payable with cash, $59,600
Cash payments to employees, $43,000
Loss on sale of land, $9,600
Acquired equipment by issuing long-term note payable, $15,400
Cash payments to suppliers, $147,100
Cash paid for interest, $4,100
Depreciation expense on equipment, $13,900
Paid short-term note payable by issuing common stock, $5,700
Paid cash dividends, $44,600
Received cash for issuance of common stock, $2,200
Cash received form customer, $299,400
Cash paid for income taxes, $12,000
Sold land for cash, $51,900
Interest received (in cash), $1,000
Purchased long-term investment for cash, $3,200
Requirements
Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
Also prepare a supplementary schedule of cash flows from operations using the direct method.
