Question

Name: Ziggy - Balance Sheet Ziggy, Inc. Statement of Cash Flows Indirect Method Cash Flows from Operating Activities Change 2010 2009 $ Assets Cash Acct Receivable Inventory Prepaid Exp Land Equipment Accumulated depreciation - equipment Total assets 66,000 (1,000) 37,000 (2,000) (12,000) (15,000) (12,000) $ 88,000 $ 22,000 80,000 81,000 60,000 23,000 8,000 10,000 107,000 119,000 39,000 54,000 (64,000) (52,000) $ 318,000 $ 257,000 Liabilities AP Wages Pay Interest Pay Taxes Pay Notes payable, long term Total liabilities. (14,000) 16,000 2,000 3,000 6,000 23,000 36,000 14,000 9,000 98,000 180,000 37,000 20,000 12,000 6,000 92,000 167,000 INVESTMENT ACTIVITIES $ $ Stockholders' equity Common Stock Retained earnings Total stockholders' equity... Total liabilities and stockholders' equity. 15,000 33,000 94,000 44,000 138,000 $ 318,000 $ 79,000 11,000 90,000 257,000 $ $ .......... FINANCIAL ACTIVITIES Notes: 1. Net Income for 2010 was $ 38,000 2. Equipment was sold for $10,000. Original cost was $40,000 and accumulated depreciation was $28,000. 3. Equipment was purchased. 4. A cash dividend was paid. 5. Land was sold for .... $ 8,100 Net increase in cash Cash at the beginning of the year Cash at the end of the year

Answer 1

Amount $ 38,000 Ziggy Inc Cashflow Statement using Indirect method as at 31st December 2010 :- Particulars Amount $ Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by operations :: Add: Depreciation Expense (64000-(52000-28000)) 40,000 Add: Loss on sale of equipment (40000-28000-10000) 2,000 Add: Loss on sale of land (12000-8100) 3,900 Changes in Working Capital :- Add: Decrease in Accounts receivable 1,000 Less: Increase in Inventory (37,000) Add: Decrease in Prepaid expenses 2,000 Less: Decrease in Accounts Payable (14,000) Add: Increase in Wages Payable 16,000 Add: Increase in Interest Payable 2,000 Add: Increase in Income taxes Payable 3,000 18,900 Net cash provided/(used) by Operating Activities 56,900 Cash Flows From Investing Activities: Cash received from sale of Equipment Cash received from sale of Land Cash paid for Purchase of Equipment (39000-(54000-40000)) Change in cash due to Investing Activties 10,000 8,100 (25,000) (6,900) (5,000) 15,000 6,000 Cash Flows From Financing Cash paid for Dividends (11000-38000-44000) Cash received from issue of Common stock Cash received from issue of Long term notes Change in cash due to Financing Net Changes in Cashflow from all activities Cash at the beginning of the year Cash at the end of the year 16,000 66,000 22,000 88,000