Accounting 291 Financial Statement Analysis and Cash Flow Preparation for Taguchi Company and Conard Corporation

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Accounting 291 Financial Statement Analysis and Cash Flow Preparation for Taguchi Company and Conard Corporation Individual Assignment Week 5 Accounting 291 E13 - 8 Here are comparative balance sheets for Taguchi Company. SCULLY CORPORATION Comparative Balance Sheets December 31 Assets 2011 2010 Cash $ 73,000 $ 22,000 Accounts receivable 85,000 76,000 Inventories 170,000 189,000 Land 75,000 100,000 Equipment 260,000 200,000 Accumulated depreciation (66,000) (32,000) Total $597,000 $555, 000 Liabilities and Stockholders’ Equity Accounts payable $ 39,000 $ 47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,000 Retained earnings 192,000 134,000 Total $597,000 $555,000 Additional information: 1. Net income for 2011 was $103,000. 2. Cash dividends of $45,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2011, but land was sold at cost. Instructions Prepare a statement of cash flows for 2011 using the indirect method. Solution: Taguchi Company Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities: Net Income
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