Ex. 173
A comparative statement of financial position for Mann Company appears below:
MANN COMPANY
Comparative Statement of Financial Position
Dec. 31, 2014Dec. 31, 2013
Assets
Equipment€ 60,000 €32,000
Accumulated depreciation—equipment (20,000) (14,000)
Long-term investments -0- 18,000
Prepaid expenses 6,000 9,000
Inventory 25,000 18,000
Accounts receivable 18,000 14,000
Cash 33,000 10,000
Total assets €122,000 €87,000
Equity and Liabilities
Share capital-ordinary€ 40,000€23,000
Retained earnings 28,000 10,000
Bonds payable 37,00047,000
Accounts payable 17,000 7,000
Total equity and liabilities€122,000€87,000
Ex. 173(Cont.)
Additional information:
1.Net income for the year ending December 31, 2014 was €33,000.
2.Cash dividends of €15,000 were declared and paid during the year.
3.Long-term investments that had a cost of €18,000 were sold for €14,000.
4.Sales for 2014 were €120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
Ex. 174
HARTMAN CORPORATION
Comparative statement of financial position
2014 2013
Assets
Land 18,00040,000
Equipment 70,00060,000
Accumulated depreciation (20,000) (13,000)
Prepaid insurance 25,000 17,000
Accounts receivable (net) 80,000 60,000
Cash 36,000 31,000
Total Assets $209,000 $195,000
Equity and Liabilities
Share capital-ordinary$140,000$115,000
Retained earnings 31,000 55,000
Bonds payable27,00019,000
Accounts payable 11,000 6,000
Total equity and liabilities$209,000$195,000
Additional information:
1.Net loss for 2014 is $15,000.
2.Cash dividends of $9,000 were declared and paid in 2014.
3.Land was sold for cash at a loss of $7,000. This was the only land transaction during the year.
4.Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5.$12,000 of bonds were retired during the year at carrying (book) value.
6.Equipment was acquired for ordinary shares. The fair value of the shares at the time of the exchange was $25,000.
Instructions
Prepare a statement of cash flows for the year ended 2014, using the indirect method.