vanco company cash flow statement 501363

*Problem 12-11A

The comparative balance sheets for Vanco Company as of December 31 are presented below.

VANCO COMPANY

Comparative Balance Sheets

December 31

Assets 2012 2011

Cash $ 99,688 $ 65,970

Accounts receivable 73,300 85,028

Inventory 222,026 208,172

Prepaid expenses 22,400 30,786

Land 212,570 190,580

Equipment 329,850 227,230

Accumulated depreciation equipment (65,970 ) (51,310 )

Buildings 293,200 293,200

Accumulated depreciation buildings (87,960 ) (58,640 )

Total $1,099,104 $991,016

Liabilities and Stockholders Equity

Accounts payable $ 65,574 $ 52,776

Bonds payable 439,800 439,800

Common stock, $1 par 293,200 234,560

Retained earnings 300,530 263,880

Total $1,099,104 $991,016

Additional information:

1. Operating expenses include depreciation expense of $61,572.

2. Land was sold for cash at book value.

3. Cash dividends of $17,592 were paid.

4. Net income for 2012 was $54,242.

5. Equipment was purchased for $134,872 cash. In addition, equipment costing $32,252 with a book value of

$14,660 was sold for $11,728 cash.

6. 58,640 shares of $1 par value common stock were issued in exchange for land with a fair value of $58,640.

Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (Show

amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000)