Country Vista Company_Statement of cash flows

country_vista_company_statement_of_cash_flows x

Country Vista Company_Statement of cash flows

Download and review the income statement for the Country Vista Company. You will use the income statement to help you complete Part 1 and Part 2 below.

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Country Vista Income Statement

 Country Vista CompanyIncome StatementFor the Year Ended December 31, 2011   Sales $2,48,000     Cost of Goods Sold $1,16,000    Gross Profit $1,32,000 Operating Expenses      Wages and Salaries Expense$44,000      Rent Expense$16,000      Depreciation Expense$30,000      Other Operating Expenses$18,000$1,08,000 Income from Operations $24,000 Gain on Sale of Equipment $26,000 Income before Income Taxes $50,000 Income Tax Expense $17,500 Net Income $32,500     Part 1: Indirect Method

Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below:

Additional Information:

·         Increase in Accounts Receivables=$4,000

·         Increase in Accounts Payables=$16,000

·         Increase in Income Taxes Payable=$300

·         Decrease in Prepaid Expenses=$10,000

·         Decrease in Merchandise Inventory=$14,000

·         Decrease in Long Term Notes Payable=$20,000

·         Cash Paid to Purchase Land=$50,000

·         Cash Paid to Purchase Equipment=$15,000

·         Cash Paid to Retire Bonds=$25,000

·         Cash Paid to for Dividends=$10,000

·         Cash Received from the Sale of common stock=$50,000

·         Cash at the start of the year=$24,000

Part 2: Direct Method

Using Excel and the below information please prepare the complete statement of cash flows using the direct method.

Additional Information:

·         Cash Received from Customers=$80,000

·         Cash Payments for Merchandise=$10,000

·         Cash Payments for Operating Expenses=$5,000

·         Cash payments for Interest=$6,000

·         Cash Payments for Income Taxes=$3,000

  

Download and review the income statement for the Country Vista Company. You will use the income statement to help you complete Part 1 and Part 2 below.

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Country Vista Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Vista Company
Income Statement
For the Year Ended December 31, 2011
Sales	$2,48,000
Cost of Goods Sold	$1,16,000
Gross Profit	$1,32,000
Operating Expenses
Wages and Salaries Expense	$44,000
Rent Expense	$16,000
Depreciation Expense	$30,000
Other Operating Expenses	$18,000	$1,08,000
Income from Operations	$24,000
Gain on Sale of Equipment	$26,000
Income before Income Taxes	$50,000
Income Tax Expense	$17,500
Net Income	$32,500

Part 1: Indirect Method

Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below:

Additional Information:

· Increase in Accounts Receivables=$4,000

· Increase in Accounts Payables=$16,000

· Increase in Income Taxes Payable=$300

· Decrease in Prepaid Expenses=$10,000

· Decrease in Merchandise Inventory=$14,000

· Decrease in Long Term Notes Payable=$20,000

· Cash Paid to Purchase Land=$50,000

· Cash Paid to Purchase Equipment=$15,000

· Cash Paid to Retire Bonds=$25,000

· Cash Paid to for Dividends=$10,000

· Cash Received from the Sale of common stock=$50,000

· Cash at the start of the year=$24,000

Part 2: Direct Method

Using Excel and the below information please prepare the complete statement of cash flows using the direct method.

Additional Information:

· Cash Received from Customers=$80,000

· Cash Payments for Merchandise=$10,000

· Cash Payments for Operating Expenses=$5,000

· Cash payments for Interest=$6,000

· Cash Payments for Income Taxes=$3,000