ash $ 29,700 $ 10,200 Accounts receivable (net) 53,400 20,300 Inventory 39,000 42,000 Long-term investments 0 15,000 Plant Assets, net of depreciation 180,900 125,000 Total Assets $303,000 $212,500 Accounts payable $ 16,000 $ 26,500 Accrued liabilities 28,000 17,000 Long-term notes payable 40,000 50,000 Common stock 150,000 90,000 Retained earnings 69,000 29,000 Total Liabilities and Owner’s Equity $303,000 $212,500 Year ended December 31, 2007 Sales Revenue $340,000 Cost of Goods Sold (200,000) Operating Expenses (58,400) Depreciation Expense (10,600) Gain on sale of investments 4,000 Net Income $ 75,000 Additional information: A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment. B) In 2007, no shares were repurchased and no new debt was issued. 1. Prepare the Statement of Cash Flows using indirect method.
Practice Problem Below are the balance sheet and income statement for Major, Inc.
December 31 2007 2006
Cash $ 29,700 $ 10,200
Inventory 39,000 42,000
Long-term investments 0 15,000
Plant Assets, net of
Total Assets $303,000 $212,500
Accounts payable $ 16,000 $ 26,500
Accrued liabilities 28,000 17,000
Long-term notes payable 40,000 50,000
Common stock 150,000 90,000
Total Liabilities and Owner’s Equity $303,000 $212,500
Year ended December 31, 2007
Sales Revenue $340,000
Cost of Goods Sold (200,000)
Operating Expenses (58,400)
Depreciation Expense (10,600)
Gain on sale of investments 4,000
Net Income $ 75,000
Additional information:
A) In 2007, Major, Inc didn’t sell plant asset and didn’t purchase additional investment.
B) In 2007, no shares were repurchased and no new debt was issued.
1. Prepare the Statement of
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