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Prepare a cash flow statement (indirect method) from the given information.

Prepare a cash flow statement (indirect method) from the given information.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a cash flow statement (indirect method) from the given information.

please include explanation for each step/line item

The following is a consolidated balance sheet and income statement for Z-SHOP for the fiscal years ended January 31, 2005 and 2006: 2005 2006 Cash and cash equivalents Accounts receivable 5,488 1,715 29,762 1,889 6.414 Inventory Prepaid expenses 2,662 32,191 2,591 Total current assets 38,854 43,858 Plant, property and equipment Accumulated depreciation Property under capitalized lease (net) Other assets and deferred charges 84,037 (18,637) 97,302 (21,427) 3,415 15,021 2,718 13,182 Total assets 120,154 138,169 Accounts payable 21,987 25,373 13.465 Accrued liabilities 12,120 Accrued income taxes Commercial paper Current portion of long-term debt 1,281 3,812 3,982 1,322 3,754 4,894 Total current liabilities 43,182 48,808 Long-term liabilities Long-term debt under capital leases 20,087 3,171 4,318 49,396 26,429 3,742 Deferred income taxes Shareholders' equity 6,019 53,171 Total liabilities & stockholders' equity 120.154 138,169 Net Sales 312,427 3,227 315,654 Other income, net Total revenue Costs and expenses Cost of goods sold Selling, marketing and administrative 240,391 56,733 Operating income 18,530 1,171 Interest – debt Interest – leases 249 Interest income (248) Income from continuing operations before tax and minority interest Provision for income taxes 17,358 5.803 Income from continuing operations before minority interest Minority interest 11,555 (324) Net income 11,231 Earnings per share 2.68 Other information (2006): Common stock dividend 2,511 Common stock repurchases 3,580
Transcribed Image Text:The following is a consolidated balance sheet and income statement for Z-SHOP for the fiscal years ended January 31, 2005 and 2006: 2005 2006 Cash and cash equivalents Accounts receivable 5,488 1,715 29,762 1,889 6.414 Inventory Prepaid expenses 2,662 32,191 2,591 Total current assets 38,854 43,858 Plant, property and equipment Accumulated depreciation Property under capitalized lease (net) Other assets and deferred charges 84,037 (18,637) 97,302 (21,427) 3,415 15,021 2,718 13,182 Total assets 120,154 138,169 Accounts payable 21,987 25,373 13.465 Accrued liabilities 12,120 Accrued income taxes Commercial paper Current portion of long-term debt 1,281 3,812 3,982 1,322 3,754 4,894 Total current liabilities 43,182 48,808 Long-term liabilities Long-term debt under capital leases 20,087 3,171 4,318 49,396 26,429 3,742 Deferred income taxes Shareholders' equity 6,019 53,171 Total liabilities & stockholders' equity 120.154 138,169 Net Sales 312,427 3,227 315,654 Other income, net Total revenue Costs and expenses Cost of goods sold Selling, marketing and administrative 240,391 56,733 Operating income 18,530 1,171 Interest – debt Interest – leases 249 Interest income (248) Income from continuing operations before tax and minority interest Provision for income taxes 17,358 5.803 Income from continuing operations before minority interest Minority interest 11,555 (324) Net income 11,231 Earnings per share 2.68 Other information (2006): Common stock dividend 2,511 Common stock repurchases 3,580
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