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E13-8 Here are comparative balance sheets for Taguchi Company. TAGUCHI COMPANY Comparative Balance Sheets December 31

TAGUCHI COMPANY Comparative Balance Sheets December 31
Assets Cash Accounts Reveibable Inventories Land Equipment Accumulated depreciation Total $ $ $ $ $ $ $ 2011 73,000.00 85,000.00 170,000.00 75,000.00 260,000.00 (66,000.00) 597,000.00

Liabilities and Stockholders’ Equity Accounts payable $ 39,000.00 Bonds payable $ 150,000.00 Common Stock ($1 par) $ 21,600.00 Retained Earnings $ 192,000.00 Total $ 597,000.00 Additional information: 1. Net income for 2011 was $103,000. 2. Cash dividends of $45,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2011, but land was sold at cost. InstructionsPrepare a statement of cash flows for 2011 using the indirect method

Answers
Taguchi Company

Cash flows from operating activities Net income Depreciation expense Decrease in inventory Decrease in accounts payable Increase in accounts receivable Net cash provided by operating Activity Cash flows: investing

Sale of land Purchase of equipment Net cash used by investing activity Cash flows: financing Issuance of common stock Payment of cash dividends Redemption of bonds Net cash used by financing activity Net increase in cash Cash at beginning of period Cash at end of period

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HI COMPANY e Balance Sheets ember 31
$ $ $ $ $ $ $ 2010 22,000.00 76,000.00 189,000.00 100,000.00 200,000.00 (32,000.00) 555,000.00

$ $ $ $ $

470,000.00 200,000.00 174,000.00 13,400.00 555,000.00

ndirect method

nswers

$ $ $ $ $ 34,000.00 19,000.00 (9,000.00) (8,000.00) $ $

103,000.00

36,000.00 139,000.00

$ $

25,000.00 (60,000.00) $ (35,000.00)

$ $ $

42,000.00 (45,000.00) (50,000.00) $ $ $ $ (53,000.00)