Problem: Condensed financial statements for Dragon Enterprises follow.
(A) Calculate the amount of dividends Dragon paid using the information given.
(B) Prepare a statement of cash flows using the indirect method.
Comaprative Balance sheets Dec 31, 2009 and 2008
| |
2009 |
2008 |
| Cash |
1,200 |
850 |
| Accounts recieveable |
1,750 |
1200 |
| Inventory |
1250 |
1360 |
| Plant and Equipment |
4600 |
3900 |
| Accumulated Depreciation |
-1200 |
-1100 |
| Long-Term investments |
970 |
1110 |
| Total Assets |
8570 |
7320 |
| Accounts Payable |
1100 |
800 |
| Accrued wages payable |
250 |
350 |
| Interest payable |
70 |
120 |
| Income tax Payable |
200 |
50 |
| Bonds Payable |
1100 |
1400 |
| Capital Stock |
1000 |
930 |
| Paid-in capital |
400 |
70 |
| Retained Earnings |
4450 |
3600 |
| Total Liabilities and Equity |
8570 |
7320 |
Income Statement for year ended December 31, 2009
| Sales |
9500 |
| Cost of Good sold |
6650 |
| Gross profit |
2850 |
| Other Expenses |
|
| Selling and Administrative |
1200 |
| Depreciation |
100 |
| Interest |
150 |
| Income tax |
350 |
| Net Income |
1050 |