VANCO COMPANY_Cash flow statement

VANCO COMPANY_Cash flow statement

Question
	
*Problem 12-11A
The comparative balance sheets for Vanco Company as of December 31 are presented below.















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VANCO COMPANY
Comparative Balance Sheets
December 31






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Assets 2012 2011
Cash $ 99,688 $ 65,970
Accounts receivable 73,300 85,028
Inventory 222,026 208,172
Prepaid expenses 22,400 30,786
Land 212,570 190,580
Equipment 329,850 227,230
Accumulated depreciation—equipment (65,970 ) (51,310 )
Buildings 293,200 293,200
Accumulated depreciation—buildings (87,960 ) (58,640 )
Total $1,099,104 $991,016
Liabilities and Stockholders’ Equity
Accounts payable $ 65,574 $ 52,776
Bonds payable 439,800 439,800
Common stock, $1 par 293,200 234,560
Retained earnings 300,530 263,880
Total $1,099,104 $991,016
Additional information:
1. Operating expenses include depreciation expense of $61,572.
2. Land was sold for cash at book value.
3. Cash dividends of $17,592 were paid.
4. Net income for 2012 was $54,242.
5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of
$14,660 was sold for $11,728 cash.
6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.
Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (Show
amounts that decrease cash flow with either a - sign e.g. -15,0