XACC/291 – Week 8 Assignment

Complete Exercises E13-8 & E14-3

Exercise E13-8

Taguchi Company
Statement of Cash flows-Indirect method For the year ended in December 31,2011

Cash Flows from operating activities
Net income 103,000
Adjustments to receive net income to net cash provided by operating cash activities:
Increase in accounts receivable (9,000)
Decrease in inventory 19,000
Decrease in accounts payable 8,000 18,000
Net cash provided by operating activities 121,000

Cash flows from investing activities
Sale of land 25,000
Purchase of equipment 60,000
Net cash used by investing activities 85,000

Cash flows from financing activities
Redemption of bonds (50,000)
Sale of common stock 42,000
Payment of dividends 45,000
Net cash provided by financing activities 37,000

Net increase in cash 51,000
Cash at beginning of period 22,000
Cash at end of period 73,000

Non-cash investing and financing activities
None to report

Exercise E14-3

A. Horizontal Analysis Assets Amount Percent Current assets (6,000) (7.5)% Plant Assets 9,000 10% Intangibles (13,000) (32.5)% Total Assets (10,000) (4.8)%
Liabilities and Stockholder's Equity Current Liabilities (6,000) (12.5)% Long-term Liabilities (7,000) (4.7)% Stock holders Equity 3,000 25%
Total Liabilities and Stockholder's equity (10,000)