ACCT122 – Spring 2014_National Brands Corporation_Cash Flow

ACCT122 – Spring 2014_National Brands Corporation_Cash Flow

Question
	
ACCT122 – Spring 2014
Due March 8, 2014 Project #2
Preparation of a Statement of Cash Flows – Indirect Method
Using the provided information for National Brands Corporation, answer the following questions:
a. What is the book value of the equipment sold?
b. What is the book value of the building sold?
c. Prepare a statement of stockholders’ equity
d. Prepare a statement of cash flows using the indirect method.
Your answer may be submitted using Excel or Word; please make sure it is in the proper format.
Plant assets:
? Acquisitions for the year were $47,000 cash.
? Depreciation expense - $4,100
Common stock was issued for $88,000.
Equipment:
? Acquisitions for the year were $20,000 by executing a note payable.
? Sold equipment for $35,000 cash. Calculate the gain/loss (analyze the t-account).
? Depreciation expense - $4,000
Buildings:
? Sold a building for $31,700 cash. Calculate the gain/loss (analyze the t-account).
? Depreciation expense - $6,000
Treasury stock was sold for $45,000 cash.
Cash dividends of $15,000 were paid.
Net income/ (loss) for the year is calculated from the activity in Retained Earnings.
National Brands Corporation
Comparative Balance Sheet
December 31, 2013
December 31, 2013 December 31, 2012
Cash $180,200 $15,000
Accounts Receivable 15,000 28,600
Inventory 23,800 17,000
Prepaid expenses 3,000 5,700
Equipment 16,000 36,400
Plant assets 52,900 10,000
Building 84,000 114,500
$374,900 $227,200
Accounts payable (merchandise) $37,400 $16,000
Salary payable 5,500 4,000
Accrued liabilities 15,000 19,300
Income tax payable 3,800 3,000
Notes payable 117,000 97,000
Common stock 138,000 50,000
Treasury stock 0 (45,000)
Retained earnings 58,200 82,900
$374,900 $227,200