The following financial statements relate to Alpine Trails Ski Resort: comparative balance sheets as of December 31, 20x3 and 20x2; income statement for 20x3; and
statement of retained earnings for 20x3.
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Alpine Trails Ski Resort
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Comparative Balance Sheets
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December 31, 20x3 and 20x2
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(In thousands)
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Assets
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20X3
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20X2
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Current assets:
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Cash
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25
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22
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Marketable securities
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10
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10
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Accounts receivable
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130
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140
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Merchandise inventory
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40
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35
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Prepaid expenses
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10
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3
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Total current assets
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215
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210
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Investment in Coulterton Transit Company
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55
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45
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Facilities and equipment
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450
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450
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Less: Accumulated depreciation
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(225)
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(175)
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Land
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653
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540
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Total assets
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1,148
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1,070
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Current liabilities:
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Accounts payable
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80
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75
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Accrued salaries payable
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15
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25
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Deferred revenue
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3
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5
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Total current liabilities
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98
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105
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Deferred income taxes
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20
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15
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Bonds payable
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190
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190
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Total liabilities
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308
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310
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Stockholders' equity:
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Common stock
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270
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270
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Retained earnings
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570
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490
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Total stockholders' equity
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840
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760
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Total liabilities and stockholders' equity
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1,148
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1,070
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Alpine Trails Ski Resort
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Income Statement
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For the Year Ended December 31, 20x3
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(In thousands)
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Revenue:
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Slope fees
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340
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Condominium rentals
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625
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Sales of merchandise
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75
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Total revenue
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1,040
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Less: Cost of merchandise
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50
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Gross margin
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990
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Less: Operating expenses
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Salaries
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310
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Insurance
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80
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Property taxes
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35
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Depreciation
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50
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Utilities
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100
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Maintenance
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50
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Advertising
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20
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Administration
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170
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Interest on bonds
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15
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Total operating expenses
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830
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Income before taxes
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160
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Income-tax expense
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50
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Net income
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110
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Alpine Trails Ski Resort
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Statement of Retained Earnings
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For the Year Ended December 31, 20x3
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(In thousands)
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Retained earnings, December 31, 20x2
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490
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Add: Net income for 20x3
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110
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Subtotal
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600
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Deduct: Dividends declared in 20x3 .
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30
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Retained earnings, December 31, 20x3
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570
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Alpine Trails did not buy or sell any facilities or equipment during 20x3.
Required:
Using the indirect method, prepare the company's statement of cash flows for 20x3. Refer to the financial statement given in the precceding problem for Alpine Trails ski resort
Required:
Set up T-accounts to use as an aid in preparing the company's statement of cash flows. Prepare statement for 20 X 3.
Required: Using the direct method , prepare the company's statement of cash flows for 20 x 3.