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Assignment
In addition to the financial statements presented on the next pages, also find the notes below. Use information as necessary from the notes and the financial statements to construct the cash flow statement for the company for the year ending December 31, 2012
Notes:
1. All equipment/furniture purchases are made using cash. There were no disposals during the year.
2. Land that originally cost $14,000 was sold for $9,800.
3. Short-term investments are not classified as a cash equivalent and are non-trade related. Any purchases or sales are made in cash.
4. Long-term notes payable and bonds payable are shown in the balance sheet at their face value and indicate repayments or issuances as appropriate.
5. Cash dividends were paid to shareholders during the year.
3
2012 2011
Assets
Current Assets
Cash $ 58.8 $ 42.0
Accounts Receivable $ 102.2 $ 105.0
Short-term Investments $ 56.0 $ 21.0
Inventory $ 105.0 $ 98.0
Total Current Assets $ 322.0 $ 266.0
Property Plant and Equipment
Land $ 70.0 $ 84.0
Equipment and Furniture $ 770.0 $ 560.0
Less: Accumulated Depreciation $ (161.0) $ 609.0 $ (105.0) $ 455.0
Net Property Plant and Equipment $ 679.0 $ 539.0
Total Assets $ 1,001.0 $ 805.0
Liabilities
Current Liabilities
Accounts Payable $ 39.2 $ 49.0
Salaries Payable $ 2.8 $ 7.0
Interest Payable $ 7.0 $ 4.2
Income Tax Payable $ 12.6 $ 16.8
Total Current Liabilities $ 61.6 $ 77.0
Long-term Liabilities
Notes Payable $ – $ 42.0
Bonds Payable $ 224.0 $ 140.0
Total Long-term Liabilities $ 224.0 $ 182.0
Shareholders’ Equity
Common Stock $ 350.0 $ 280.0
Paid in Capital – excess of par $ 176.4 $ 140.0
Retained Earnings $ 189.0 $ 126.0
Total Shareholders’ Equity $ 715.4 $ 546.0
Total Liabilities and Shareholders’ Equity $ 1,001.0 $ 805.0
Green Lantern Company
Balance Sheet
December 31, 2012 and 2011
($ in 000s)
4
Revenues
Sales Revenue $ 532.0
Expenses
Cost of Goods Sold $ 182.0
Salaries Expense $ 63.0
Depreciation Expense $ 56.0
Interest Expense $ 16.8
Loss on Sale of Land $ 4.2
Income Tax Expense $ 98.0 $ (420.0)
Net Income $ 112.0
