cash flows
Increase
2012 2011 (Decrease)
Current Assets Revenue
Cash and Cash Equivalents $ 2,031,300 $ 2,560,000 $ (528,700) Sales $ 43,833,000
Accounts Receivable 7,202,000 6,230,000 972,000 Dividend Revenue 250,000
Inventories 7,316,000 6,786,000 530,000 Total Revenues 44,083,000
Total Current Assets 16,549,300 15,576,000 973,300 Expenses
Fixed Assets Cost of Goods Sold 28,063,000
Land 1,811,000 1,728,000 83,000 Salary Expense 8,670,000
Equipment, net 13,889,000 10,121,000 3,768,000 Depreciation Expense 1,010,000
Total Fixed Assets 15,700,000 11,849,000 3,851,000 Other Operating Expenses 4,183,000
Total Assets $ 32,249,300 $ 27,425,000 $ 4,824,300 Interest Expense 517,000
Income Tax Expense 370,000
Total Expenses 42,813,000
Current Liabilities Net Income $ 1,270,000
Accounts Payable $ 10,782,000 $ 10,038,000 $ 744,000
Total Current Liabilities 10,782,000 10,038,000 744,000
Long-term Liabilities
Bonds Payable 11,236,000 8,370,000 2,866,000
Total Liabilities 22,018,000 18,408,000 3,610,000
Stockholders’ Equity
Common Stock 2,629,000 2,457,000 172,000
Retained Earnings 8,676,300 7,637,000 1,039,300
Treasury Stock (1,074,000) (1,077,000) 3,000
Total Stockholders’ Equity 10,231,300 9,017,000 1,214,300
Total Liabilities & Stockholders’ Equity $ 32,249,300 $ 27,425,000 $ 4,824,300
Additionally, SFCC Corporation, Inc. purchased land of $83,000 by financing it 100% with bonds payable during 2012.
Requirements. Using the above financial statements, create the following:
1. Answer the following questions:
a. How much cash is received from the issuance of bonds payable?
b. How much equipment has been purchased this year?
c. What is the dollar amount of divends?
d. How much cash was exchanged in the purchase of the land?
2. Prepare the statement of cash flows using the indirect method.
3. Prepare the Operating Activities section of statement of cash flows using the direct method.
4. Comment on your thoughts regarding the two different methods.
December 31, 2012 and 2011 For Year Ended December 31, 2012
ACCT 122 – Principles of Accounting 2
Project #2 – Statement of Cash Flows
SFCC Corporation, Inc. SFCC Corporation, Inc.
Comparative Balance Sheet Income Statement
