Financial data of Fancy Footwork Company for 2013 and 2012 are presented below. FANCY FOOTWORK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31,…

Financial data of Fancy Footwork Company for 2013 and 2012 are presented below. FANCY FOOTWORK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2013 AND 2012 2013 2012 Cash $ 260,000 $ 230,000 Receivables $ 156,000 $ 120,000 Inventory $ 180,000 $ 220,000 Plant assets $ 160,000 $ 135,000 Accumulated depreciation $ (80,000) $ (76,000) Long-term investments (held-to-maturity) $ 80,000 $ 93,000 $ 756,000 $ 722,000 Accounts payable $ 135,000 $ 122,000 Accrued liabilities $ 30,000 $ 33,100 Bonds payable $ 135,000 $ 166,000 Common stock $ 180,000 $ 165,000 Retained earnings $ 276,000 $ 235,900 $ 756,000 $ 722,000 FANCY FOOTWORK COMPANY INCOME STATEMENT For the year ended Dec 31, 2013 Sales 750000 Cost of Goods Sold 530000 Gross Margin 220000 Selling and administrative expenses 106000 Income from Operations 114000 Other revenues and gains Gain on sale of investments 7000 Income before tax 121000 Income tax expense 48400 Net Income 72600 Additional information: During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500. Required: A) Prepare a statement of cash flows using the indirect method B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

Homework – Week 6 – Chapter 23

Problems:

$ 135,000

$ 135,000

$ 180,000

$ 756,000

$ 722,000

FANCY FOOTWORK COMPANY