Question 1 - The current sections of Sanford Inc.'s balance sheets at December 31, 2013 and 2014, are presented here. Sanford's net income for 2014 was $477,054. Depreciation expense was $84,186.
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2014
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2013
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Current assets
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|
|
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Cash
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$327,390
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$ 308,682
|
|
Accounts receivable
|
249,440
|
277,502
|
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Inventory
|
523,824
|
536,296
|
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Prepaid expenses
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84,186
|
68,596
|
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Total current assets
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$1,184,840
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$1,191,076
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Current liabilities
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|
|
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Accrued expenses payable
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$ 46,770
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$ 15,590
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Accounts payable
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265,030
|
286,856
|
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Total current liabilities
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$311,800
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$ 302,446
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Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.
Question 2 - The following information is available for Ramos Corporation for the year ended December 31, 2014.
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Beginning cash balance
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$ 98,370
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Accounts payable decrease
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8,088
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Depreciation expense
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354,132
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Accounts receivable increase
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17,925
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Inventory increase
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24,046
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Net income
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621,043
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Cash received for sale of land at book value
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76,510
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Cash dividends paid
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26,232
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Income taxes payable increase
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10,274
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Cash used to purchase building
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631,754
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Cash used to purchase treasury stock
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56,836
|
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Cash received from issuing bonds
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437,200
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Prepare a statement of cash flows using the indirect method.