Home Free Inc. had the following financial information for 2013. Â Prepare the statement of cash flows using the indirect method for the operating section. Â Briefly analyze the statement -- what do you learn from it?
Additional information: Â Old equipment was sold for $1200 cash when the original cost of the equipment sold was $24,100. No new equipment was purchased in 2013. Land was purchased with cash. Assume any new stock was issued for cash. Â Dividends were paid in Cash.
Enter amounts subtracted or cash paid/used as negative amounts.| Home Free, Inc. Income Statement For Year Ended December 31, 2013 | ||
|---|---|---|
| Â | Â | Â |
| Revenue: | Â | Â |
| Â Sales Revenue | Â | 255,000 |
| Â | Â | Â |
| Expenses: | Â | Â |
| Depreciation Expense | 31,000 | Â |
| Salaries Expense | 97,000 | Â |
| Rent Expense | 24,000 | Â |
| Utilities Expense | 5,500 | Â |
| Loss on Sale of Equipment | 900 | Â |
| Â Total Expenses | Â | 158,400 |
| Â | Â | Â |
| Net Income | Â | 96,600 |
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| Home Free, Inc. Balance Sheet December 31, 2013 | ||||||
|---|---|---|---|---|---|---|
| Â | Â | Â | Â | Â | Â | Â |
| Assets: | 2013 | 2012 | Â | Liabilities & Equity: | 2013 | 2012 |
| Cash | 368,200 | 446,400 | Â | Accounts Payable | 14,000 | 18,500 |
| Accounts Receivable | 90,000 | 120,000 | Â | Taxes Payable | 3,700 | 2,350 |
| Supplies | 500 | 850 | Â | Â Total Current Liabilities | 17,700 | 20,850 |
| Inventory | 82,000 | 79,000 | Â | Long Term Notes Payable | Â - | 43,000 |
| Â Total Current Assets | 540,700 | 646,250 | Â | Â | Â | Â |
| Â | Â | Â | Â | Common Stock | 160,000 | 160,000 |
| Equipment | 78,000Â | 102,100Â | Â | Paid in capital in excess of par value, common stock | 300,000 | 300,000 |
| Less: Accum. Depreciation | (67,000) | (58,000) | Â | Â Total Paid in Capital | 460,000 | 460,000 |
| Land | 145,000 | - | Â | Â | Â | Â |
| Â Total Plant Assets | 11,000 | 44,100 | Â | Retained Earnings | 219,000 | 166,500 |
| Â | Â | Â | Â | Â | Â | Â |
| TOTAL ASSETS | 696,700 | 690,350 | Â | TOTAL LIABILITIES AND EQUITY | 696,700 | 690,350 |
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| Description | Amount | Total |
|---|---|---|
| Subcategory,Cash Flows from Operating Activities: | ||
| Subcategory,Adjustments to reconcile net income to net cash | ||
| Single line | Single line | |
| Total Adjustments | Single lineSingle line | |
| Single line | ||
| Subcategory,Cash Flows from Investing Activities: | ||
| Single line | Single line | |
| Single line | ||
| Subcategory,Cash Flows from Financing Activities: | ||
| Single line | Single line | |
| Single lineSingle line | ||
| Single line | ||
| Single line | ||
| Single line | ||
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