Ullner data are for Problen Dayton TentAwning Prepare workin

Ullner data are for Problen Dayton Tent&Awning; Prepare workins The following comparative Inc DAYTON TENT & AWNING SALES, INC. Comparative Balance Sheets June 30, 2013 and 2012 es method (Ap 2013 2012 Assets $441,800 332,600 432,900 850,200 5,850 351,000 2,184,000 1,209,000 468,000 750,750 819,000 Cash Accounts receivable, net Merchandise inventory Prepaid insurance Land 3,900 312,000 858,000 (809,250) (510,900) Machinery and tools Accumulated depreciation-machinery and tools Total assets 4,560,200 $3,138,650 Liabilities and Stockholders\' Equity s 226,750 275,500 Accounts payable Accrued liabilities payable Bank loans (due in 2016) Mortgage bonds payable Common stock- $100 par Paid-in capital in excess of par Retained earnings Total liabilities and stockholders\' equity 56,550111,700 185,250 585,000 185,800 66,300 382,200 1,755,000 58,500 1,895,400 1,914,900 4,560,200 $3,138,650 Additi 1. Net income for the year was $128,000. 2. Depreciation for the year was $356,850. 3. There was a gain of $7,800 on the sale of land. The land was sold for $46,800. 4. The additional mortgage bonds were issued at face value as partial payment for a was $778,050. building valued at $975,000. The amount of cash paid 5. Machinery and tools were purchased for $448,500 cash. 6. Fully depreciated machinery with a cost of $58,500 was scrapped and written off 1. Additional common stock was issued at $105 per share. The total proceeds were $1,228,500 8. Dividends declared and paid were $147,500. 9. A payment was made on the bank loan, s9,750. Req The company paid interest of $9,000 and income taxes of $75,000. a. Prepare a working paper for a statement of cash flows. Prepare a statement of cash flows under the indirect method. Also prepare any necessary supplemental schedule(s).

Solution

Answer b. DAYTON TENT & AWNING SALES, INC. Statement of Cash Flows (Indirect Method) For the Year ended June 30, 2013 Cash Flow from opearating activities: Net Income            128,000 Add/(Less) non cash effects on operating activities Depreciation expense - Plant & Equipment         356,850 Gain on Sale of Land           (7,800) Increase in Accounts Receivables       (317,850) Decrease in Inventory           31,200 Decrease in Prepaid Insurance              1,950 Decrease in Accounts Payables         (48,750) Increase in Accrued Liabilities payable           74,100              89,700 Net Cash provided by operating activities            217,700 Cash flow from Investing Activities Sale of Land           46,800 Purchase of Building       (778,050) Purchase of Machine & Tools       (448,500) Net Cash used by Investing activities      (1,179,750) Cash Flow from Financing Activities Issue of Common Stock     1,228,500 Cash dividend paid       (147,500) Bank Loan Paid           (9,750) Net Cash provided by Financing activities        1,071,250 Net Increase / (Decrease) in Cash            109,200 Cash balance at the beginning - June 30, 2012            332,600 Cash balance at the end - June 30, 2013            441,800