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129.
Beltram Corporation’s balance sheet and income statement appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Assets:
Cash and cash equivalents
$30
$26
Accounts receivable
37
43
Inventory
67
63
Property, plant and equipment
601
560
Less accumulated depreciation
377
360
Total assets
$358
$332
Liabilities and stockholders’ equity:
Accounts payable
$42
$46
Accrued liabilities
23
22
Income taxes payable
39
39
Bonds payable
141
170
Common stock
63
60
Retained earnings
50
(5)
Total liabilities and stockholders’ equity
$358
$332
Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative
expense
Net operating income
Income taxes
Net income
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The company did not dispose of any property, plant, and equipment, issue any bonds
payable, or repurchase any of its own common stock during the year. The company
declared and paid a cash dividend of $13.
Required:
Prepare a statement of cash flows in good form using the indirect method.
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130.
NOTE TO THE INSTRUCTOR:
The problem requirement does not indicate whether the indirect or direct method must be
used to determine the net cash provided by operating activities. You can, if you choose,
specify that either (or even both) methods be used. The solution contains solutions for
both methods.
Dauber Corporation’s comparative balance sheet and income statement for last year
appear below:
Comparative Balance Sheet
Ending Balance
Beginning Balance
Cash
$64,000
$39,000
Accounts receivable
57,000
44,000
Inventory
58,000
70,000
Prepaid expenses
18,000
10,000
Long-term investments
290,000
230,000
Property, plant and equipment
520,000
520,000
Less accumulated depreciation
390,000
358,000
Total assets
$617,000
$555,000
Accounts payable
$14,000
$38,000
Accrued liabilities
35,000
17,000
Income taxes payable
69,000
40,000
Bonds payable
160,000
180,000
Common stock
140,000
110,000
Retained earnings
199,000
170,000
Total liabilities and stockholders‘ equity
$617,000
$555,000
Income Statement
Sales
$580,000
Cost of goods sold
250,000
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Gross margin
330,000
Selling and administrative expense
210,000
Net operating income
120,000
Income taxes
36,000
Net income
$84,000
The company declared and paid a cash dividend of $55,000 during the year. It did not sell
any long-term investments, issue any bonds payable, or repurchase any of its own
common stock.
Required:
a. Construct in good form the operating activities section of the company’s statement of
cash flows for the year.
b. Construct in good form the investing activities section of the company’s statement of
cash flows for the year.
c. Construct in good form the financing activities section of the company’s statement of
cash flows for the year.
131.
Clayborn Corporation’s net cash provided by operating activities was $111,000; its net
income was $101,000; its income taxes were $43,000; its capital expenditures were
$90,000; and its cash dividends were $28,000.
Required:
Determine the company’s free cash flow.
132.
Dukas Corporation’s net cash provided by operating activities was $218,000; its net
income was $203,000; its capital expenditures were $146,000; and its cash dividends were
$49,000.
Required:
Determine the company’s free cash flow.