Accounting 291 Financial Statement Analysis and Cash Flow Preparation forTaguchi Company and Conard CorporationIndividual Assignment Week 5Accounting 291E13-8Here are comparative balance sheets for Taguchi Company.SCULLY CORPORATIONComparative Balance SheetsDecember 31Assets20112010Cash$ 73,000$ 22,000Accounts receivable85,00076,000Inventories170,000189,000Land75,000100,000Equipment260,000200,000Accumulated depreciation(66,000)(32,000)Total$597,000$555,000Liabilities and Stockholders’ EquityAccounts payable$ 39,000$ 47,000Bonds payable150,000200,000Common stock ($1 par)216,000174,000Retained earnings192,000134,000Total$597,000$555,000Additional 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.InstructionsPrepare a statement of cash flows for 2011 using the indirect method.Solution:Taguchi CompanyStatement of Cash FlowsFor the Year Ended December 31, 2011Cash flows from operating activities:Net IncomePreview Mode
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