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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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