Avatar Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015: Avatar Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Increase / (Decrease) Cash $33,000 $13,000 $20,000 Accounts Receivable 29,000 36,000 (7,000) Inventory 56,000 29,000 27,000 Plant and Equipment, net 126,000 92,000 34,000 Total Assets $244,000 $170,000 $74,000 Accounts Payable $9,000 $13,000 $(4,000) Accrued Liabilities 7,000 3,000 4,000 Long-term Notes Payable 70,000 79,000 (9,000) Total Liabilities $86,000 $95,000 $(9,000) Common Stock $55,000 $3,000 $52,000 Retained Earnings 115,000 78,000 37,000 Treasury Stock (12,000) (6,000) (6,000) Total Stockholders' Equity $158,000 $75,000 $83,000 Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000 Avatar Company Income Statement Year Ended December 31, 2015 Sales Revenue $291,300 Interest Revenue 1,000 Gain on Sale of Plant Assets 6,000 Total Revenues and Gains $298,300 Cost of Goods Sold 145,000 Salaries and Wages Expense 49,000 Depreciation Expense—Plant Assets 16,000 Other Operating Expense 25,000 Interest Expense 3,500 Income Tax Expense 7,800 Total expenses 246,300 Net Income $52,000 Additional information provided by the company includes the following: Equipment costing $60,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $16,000 During 2015, the company repaid $43,000 of Long-Term Notes Payable. During 2015, the company borrowed $34,000 on a new Note Payable There were no stock retirements during the year. There were no sales of Treasury Stock during the year. Requirement: Prepare a statement of cash flows for year end 2015
Avatar Auto Parts Company uses the indirect method to prepare its statement of
Avatar Company
Comparative
December 31, 2015 and 2014
|
|
2015 |
2014 |
Increase / (Decrease) |
|
Cash |
$33,000 |
$13,000 |
$20,000 |
|
|
29,000 |
36,000 |
(7,000) |
|
Inventory |
56,000 |
29,000 |
27,000 |
|
Plant and Equipment, net |
126,000 |
92,000 |
34,000 |
|
Total Assets |
$244,000 |
$170,000 |
$74,000 |
|
|
|
|
|
|
Accounts Payable |
$9,000 |
$13,000 |
$(4,000) |
|
Accrued Liabilities |
7,000 |
3,000 |
4,000 |
|
Long-term Notes Payable |
70,000 |
79,000 |
(9,000) |
|
Total Liabilities |
$86,000 |
$95,000 |
$(9,000) |
|
|
|
|
|
|
Common Stock |
$55,000 |
$3,000 |
$52,000 |
|
|
115,000 |
78,000 |
37,000 |
|
|
(12,000) |
(6,000) |
(6,000) |
|
Total |
$158,000 |
$75,000 |
$83,000 |
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$244,000 |
$170,000 |
$74,000 |
Avatar Company
Income Statement
Year Ended December 31, 2015
|
Sales Revenue |
$291,300 |
|
|
Interest Revenue |
1,000 |
|
|
Gain on Sale of Plant Assets |
6,000 |
|
|
Total Revenues and Gains |
|
$298,300 |
|
Cost of Goods Sold |
145,000 |
|
|
Salaries and Wages Expense |
49,000 |
|
|
|
16,000 |
|
|
Other Operating Expense |
25,000 |
|
|
Interest Expense |
3,500 |
|
|
Income Tax Expense |
7,800 |
|
|
Total expenses |
|
246,300 |
|
Net Income |
|
$52,000 |
Additional information provided by the company includes the following:
Equipment costing $60,000 was purchased for cash.
Equipment with a net asset value of $10,000 was sold for $16,000
During 2015, the company repaid $43,000 of Long-Term Notes Payable.
During 2015, the company borrowed $34,000 on a new Note Payable
There were no stock retirements during the year.
There were no sales of Treasury Stock during the year.
Requirement: Prepare a statement of cash flows for year end 2015
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