Statement of Cash Flow Presented below are the financial statements for the Amphlett Corporation, as of year-end 2012 and 2013. AMPHLETT CORPORATION Consolidated Balance Sheets As of Year-End ($ thousands) 2013 2012 Assets Current Cash $18,000 $108,000 Marketable securities 240,000 - Accounts receivable (net) 708,000 528,000 Inventory 720,000 738,000 Total current assets 1,686,000 1,374,000 Noncurrent Long-term investments 372,000 468,000 Property & equipment 2,160,000 1,320,000 Less: Accumulated depreciation (600,000) (600,000) Property & equipment (net) 1,560,000 720,000 Intangibles (net) 114,000 126,000 Total noncurrent assets 2,046,000 1,314,000 Total assets $3,732,000 $2,688,000 Liabilities & Shareholders' Equity Accounts payable $1,080,000 $1,020,000 Short-term bank debt 228,000 - Total liabilities 1,308,000 1,020,000 Shareholders' equity Common stock, $10 par value 930,000 810,000 Additional paid-in-capital 456,000 360,000 Retained earnings 1,038,000 498,000 Total shareholders' equity 2,424,000 1,668,000 Total liabilities & shareholders' equity $3,732,000 $2,688,000 AMPHLETT CORPORATION Consolidated Income Statement For Year Ended ($ thousands) 2013 2012 Revenues $1,716,000 $1,440,000 Less: Cost of goods sold 600,000 504,000 Gross margin 1,116,000 936,000 Less: Selling, general & administrative expenses 180,000 144,000 Operating income 936,000 792,000 Gain on sale of investments 84,000 - Net income before taxes 1,020,000 792,000 Less: Income taxes 60,000 13,200 Net income after taxes $960,000 $778,800 The footnotes to the Amphlett Corporation's financial statements revealed the following additional information: Property and equipment costing $540 million was sold for its book value of $240 million. Long-term investments were sold for $180 million, which included a gain of $84 million. Required Using the above financial data for the Amphlett Corporation, prepare the firm's statement of cash flow for 2013 using the indirect method. Use a negative sign with answers to indicate a decrease in cash. Amphlett Corporation Statement of Cash Flows For Year Ended 2013 (in thousands) Cash flow From Operations BLANK Net Income $Answer Add: Depression Expense Answer Amortization expense Answer Less: Gain on Sale of Investments Answer Accounts receivable (net) Answer Inventory Answer Accountable Payable Answer Cash Flow From Operations Answer Cash Flow for Investing BLANK Marketable securities Answer Long-term investments Answer Purchase of property and equipment Answer Sale of Property and Equipment Answer Cash Flow for Investing Answer Cash From Financing BLANK Short-term bank debt Answer Common stock + additional paid in capital Answer Dividends Paid Answer Cash From Financing Answer Decrease in Cash Answer Cash, beginning of year Answer Cash, end of year $Answer please answer do not image.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Statement of Cash Flow
Presented below are the financial statements for the Amphlett Corporation, as of year-end 2012 and 2013.
|
AMPHLETT CORPORATION |
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|
As of Year-End ($ thousands) |
2013 |
2012 |
|
Assets |
||
|
Current |
||
|
Cash |
$18,000 |
$108,000 |
|
Marketable securities |
240,000 |
- |
|
Accounts receivable (net) |
708,000 |
528,000 |
|
Inventory |
720,000 |
738,000 |
|
Total current assets |
1,686,000 |
1,374,000 |
|
Noncurrent |
||
|
Long-term investments |
372,000 |
468,000 |
|
Property & equipment |
2,160,000 |
1,320,000 |
|
Less: |
(600,000) |
(600,000) |
|
Property & equipment (net) |
1,560,000 |
720,000 |
|
Intangibles (net) |
114,000 |
126,000 |
|
Total noncurrent assets |
2,046,000 |
1,314,000 |
|
Total assets |
$3,732,000 |
$2,688,000 |
|
Liabilities & Shareholders' Equity |
||
|
Accounts payable |
$1,080,000 |
$1,020,000 |
|
Short-term bank debt |
228,000 |
- |
|
Total liabilities |
1,308,000 |
1,020,000 |
|
Shareholders' equity |
||
|
Common stock, $10 par value |
930,000 |
810,000 |
|
Additional paid-in-capital |
456,000 |
360,000 |
|
Retained earnings |
1,038,000 |
498,000 |
|
Total shareholders' equity |
2,424,000 |
1,668,000 |
|
Total liabilities & shareholders' equity |
$3,732,000 |
$2,688,000 |
|
AMPHLETT CORPORATION |
||
|
For Year Ended ($ thousands) |
2013 |
2012 |
|
Revenues |
$1,716,000 |
$1,440,000 |
|
Less: Cost of goods sold |
600,000 |
504,000 |
|
Gross margin |
1,116,000 |
936,000 |
|
Less: Selling, general & administrative expenses |
180,000 |
144,000 |
|
Operating income |
936,000 |
792,000 |
|
Gain on sale of investments |
84,000 |
- |
|
Net income before taxes |
1,020,000 |
792,000 |
|
Less: Income taxes |
60,000 |
13,200 |
|
Net income after taxes |
$960,000 |
$778,800 |
The footnotes to the Amphlett Corporation's financial statements revealed the following additional information:
- Property and equipment costing $540 million was sold for its book value of $240 million.
- Long-term investments were sold for $180 million, which included a gain of $84 million.
Required
Using the above financial data for the Amphlett Corporation, prepare the firm's statement of cash flow for 2013 using the indirect method.
Use a negative sign with answers to indicate a decrease in cash.
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Amphlett Corporation |
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(in thousands) |
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Cash flow From Operations |
BLANK |
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Net Income |
$Answer |
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Add: |
Depression Expense |
Answer |
|
Amortization expense |
Answer |
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|
Less: |
Gain on Sale of Investments |
Answer |
|
Accounts receivable (net) |
Answer |
|
|
Inventory |
Answer |
|
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Accountable Payable |
Answer |
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Cash Flow From Operations |
Answer |
|
|
|
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Cash Flow for Investing |
BLANK |
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Marketable securities |
Answer |
|
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Long-term investments |
Answer |
|
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Purchase of property and equipment |
Answer |
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Sale of Property and Equipment |
Answer |
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Cash Flow for Investing |
Answer |
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|
|
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Cash From Financing |
BLANK |
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Short-term bank debt |
Answer |
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Common stock + additional paid in capital |
Answer |
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Dividends Paid |
Answer |
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Cash From Financing |
Answer |
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|
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Decrease in Cash |
Answer |
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Cash, beginning of year |
Answer |
|
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Cash, end of year |
$Answer |
please answer do not image.
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