If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on k It will show all calculations and formulas Automatically Automatically Please Give Me the Feed Back About My Solution Question: Problems: Financial data of Fancy Footwork Company for 2013 and 2012 are presented below. FANCY FOOTWORK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2013 AND 2012 2013 2012 Cash $ 260,000 $ 230,000 Receivables $ 156,000 $ 120,000 Inventory $ 180,000 $ 220,000 Plant assets $ 160,000 $ 135,000 Accumulated depreciation $ (80,000) $ (76,000) Long-term investments (held-to-maturity) (held-to-maturity) $ 80,000 $ 93,000 $ 756,000 $ 722,000 Accounts payable $ 135,000 $ 122,000 Accrued liabilities $ 30,000 $ 33,100 Bonds payable $ 135,000 $ 166,000 Common stock $ 180,000 $ 165,000 Retained earnings $ 276,000 $ 235,900 $ 756,000 $ 722,000
yes yes yes 13000 9300 93000-800 0-80000 00 on yes yes
FANCY FOOTWORK COMPANY INCOME STATEMENT For the year ended Dec 31, 2013 Sales 750000 Cost of Goods Sold 530000 Gross Margin 220000 Selling and administrative expenses 106000 Income from Operations 114000 Other revenues and gains Gain on sale of investments 7000 Income before tax 121000 Income tax expense 48400 Net Income 72600 Additional information: During the year, $9000 of common stock was issued i ssued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500. Required: A) Prepare a statement of cash flows using the indirect method Solution:- Computation Computation of the Cash flow using indirect method FANCY FOOTWORK COMPANY STATEMENT OF CASH FLOW AS OF December 31 InDirect Method
15000 9000 issue issued d for pl
Particulars CASHFLOW FROM OPERATING ACTIVITIES Net Income Depreciation on Assets Gain on sale of investments Increase in Account Receivable Decrease in Marchandise Inventory Increase in Account Payable Decrease in Accruedt Payable Net Cash Flow from Operating Activities
Amounts $ $ $ $ $ $ $ $
72,600 4,000 80000-76000 (7,000) (36,000) 120000-156000 40,000 220000-180000 13,000 135000-122000 (3,100) 30000-33100 83,500
CASHFLOW FROM INVESTING ACTIVITIES Sale of Investments Purchase of Assets Net Cash Flow from Investing Activities
$ $ $
20,000 93000-80000 on (16,000) 160000-1350004,000
CASHFLOW FROM FINANCING ACTIVITIES Dividends Paid Issue of Common Stock Repaid Bond payable Net Cash Flow from Financing Activities
$ $ $ $
(32,500) 6,000 180000-165000(31,000) 135000-166000 (57,500)
Net Cash Flows Add Opening Cash Balance Closing Cash Balance
$ $ $
30,000 230,000 260,000
B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) Solution:- Computation of the Cash flow using Direct method FANCY FOOTWORK COMPANY STATEMENT OF CASH FLOW AS OF December 31 Direct Method Particulars Amount CASHFLOW FROM OPERATING ACTIVITIES Cash Received from customers $ 714,000 750000-36000 Cash Paid to Suppliers $ (477,000) 530000-40000-1 Operating Expenses $ (105,100) (106000+3100-4 Income Tax paid $ (48,400) as given in the pr Net Cash Flow from Operating Activities $ 83,500 CASHFLOW FROM INVESTING ACTIVITIES Sale of Investments Purchase of Assets Net Cash Flow from Investing Activities
$ $ $
20,000 (16,000) 4,000
CASHFLOW FROM FINANCING ACTIVITIES Dividends Paid
$
(32,500)
Issue of Common Stock Repaid Bond payable Net Cash Flow from Financing Activities
$ $ $
6,000 (31,000) (57,500)
Net Cash Flows Add Opening Cash Balance Closing Cash Balance
$ $ $
30,000 230,000 260,000
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his sold of gain 7000 sol selling price is 20000 cost is 13000 + 7000 gain
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his sold of gain 7000 sol selling price is 20000 cost is 13000 + 7000 gain 9000 asset purchased 25000 on that issued shares 9000 rest cash 16000
9000
Sales - Increase in A/R 000 COGS-Increase in inventory - Increase in A/P 000) Operating expesens+accured exp-Depreciation oblem