Your Questions About Here Are The Financial Statements Of Trahan Company

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George asks…

how to do statement of cash flows?

Here are the financial statements of Trahan Company.

TRAHAN COMPANY
Comparative Balance Sheets
December 31

Assets 2010 2006
——— ——– ———-
Cash $57,874 $30,460
Accounts receivable 50,259 21,322
Merchandise inventory 41,121 30,460
Property, plant, and equipment 91,380 118,794
Accumulated depreciation (48,736) (36,552)
———— ————
Total $$at1 0 $164,484

Liabilities and Stockholders’ Equity
———————————————–
Accounts payable $36,552 $22,845
Income taxes payable 10,661 12,184
Bonds payable 41,121 50,259
Common stock 27,414 21,322
Retained earnings 76,150 57,874
———– ———–
Total $191,898 $164,484

TRAHAN COMPANY
Income Statement
For the Year Ended December 31, 2010

Sales $368,566
Cost of goods sold 266,525
————-
Gross profit 102,041
Selling expenses $27,414
Administrative expenses 9,138 36,552
———- ———–
Income from operations 65,489
Interest expense 4,569
———–
Income before income taxes 60,920
Income tax expense 12,184
———–
Net income $48,736

Additional data:
1. Dividends declared and paid were $30,460.

2. During the year equipment was sold for $12,946 cash. This equipment cost $27,414 originally and had a book value of $12,946 at the time of sale.

3. All depreciation expense is in the selling expense category.

4. All sales and purchases are on account.

(a) Complete the statement of cash flows using the indirect method below. (If the amount reduces cash flow put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.)

I DID HALF OF IT. I KNOW I GOT THE JOURNAL RIGHT(the left column). I AM NOT SURE WHAT NUMBERS TO PUT IN THE 2nd HALF SO CAN SOMEONE HELP ME FINISH UP THIS ASSIGNMENT? PLEASE AND THANK YOU

TRAHAN COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2010
(Note: for Net cash provided by operating activities I got $48,736)

Cash flows from investing activities
sale of equipment ?

Cash flows from investing activities
issuance of common stock ?
payment of dividends ?
redemption of bonds ?
Net cash used by financing activities ?
Net increase in cash ?
Cash at beginning of period ?
Cash at end of period ?

financi4 answers:

Trahan Company
Statement of Cash Flows
For the Year Ended December 31, 2010

Operating activities
Net Income $48,736
Items to reconcile with net income to net cash
Depreciation expense26652
Increase in accounts receivables-28937
Increase in merchandise inventory-10661
Increase in accounts payable13707
Decrease in income taxes payable-1523
Cash from operating activities 47974

Investing activities
Sale of equipment12946
Cash from investing activities 12946

Financing activities
Redemption on bonds-9138
Issuance of stocks6092
Payment of cash dividends-30460
Cash from financing activities -33506
Net cash increase 27414
Cash at beginning of period 30460
Cash at the end of period $57,874

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