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Increase
2012 2011 (Decrease)
Current Assets Revenue
Cash and Cash Equivalents 2,031,300$ 2,560,000$
(528,700)$ Sales 43,833,000$
Accounts Receivable 7,202,000 6,230,000
972,000 Dividend Revenue 250,000
Inventories 7,316,000 6,786,000 530,000
Total Revenues 44,083,000
Total Current Assets 16,549,300 15,576,000
973,300 Expenses
Fixed Assets Cost of Goods Sold 28,063,000
Land 1,811,000 1,728,000 83,000
Salary Expense 8,670,000
Equipment, net 13,889,000 10,121,000 3,768,000
Depreciation Expense 1,010,000
Total Fixed Assets 15,700,000 11,849,000
3,851,000 Other Operating Expenses 4,183,000
Total Assets 32,249,300$ 27,425,000$ 4,824,300$
Interest Expense 517,000
Income Tax Expense 370,000
Total Expenses 42,813,000
Current Liabilities Net Income 1,270,000$
Accounts Payable 10,782,000$ 10,038,000$ 744,000$
Total Current Liabilities 10,782,000 10,038,000
744,000
Long-term Liabilities
Bonds Payable 11,236,000 8,370,000 2,866,000
Total Liabilities 22,018,000 18,408,000 3,610,000
Stockholders' Equity
Common Stock 2,629,000 2,457,000 172,000
Retained Earnings 8,676,300 7,637,000
1,039,300
Treasury Stock (1,074,000) (1,077,000) 3,000
Total Stockholders' Equity 10,231,300 9,017,000
1,214,300
Total Liabilities & Stockholders' Equity 32,249,300$
27,425,000$ 4,824,300$
Additionally, SFCC Corporation, Inc. purchased land of
$83,000 by financing it 100% with bonds payable during 2012.
Requirements. Using the above financial statements, create the
following:
1. Answer the following questions:
a. How much cash is received from the issuance of bonds
payable?
b. How much equipment has been purchased this year?
c. What is the dollar amount of divends?
d. How much cash was exchanged in the purchase of the
land?
2. Prepare the statement of cash flows using the indirect
method.
3. Prepare the Operating Activities section of statement of cash
flows using the direct method.
4. Comment on your thoughts regarding the two different
methods.
December 31, 2012 and 2011 For Year Ended December 31,
2012
ACCT 122 - Principles of Accounting 2
Project #2 - Statement of Cash Flows
SFCC Corporation, Inc. SFCC Corporation, Inc.
Comparative Balance Sheet Income Statement
Increase2012 2011 (Decrease)Current Assets Revenue.docx

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Increase2012 2011 (Decrease)Current Assets Revenue.docx

  • 1. Increase 2012 2011 (Decrease) Current Assets Revenue Cash and Cash Equivalents 2,031,300$ 2,560,000$ (528,700)$ Sales 43,833,000$ Accounts Receivable 7,202,000 6,230,000 972,000 Dividend Revenue 250,000 Inventories 7,316,000 6,786,000 530,000 Total Revenues 44,083,000 Total Current Assets 16,549,300 15,576,000 973,300 Expenses Fixed Assets Cost of Goods Sold 28,063,000 Land 1,811,000 1,728,000 83,000 Salary Expense 8,670,000 Equipment, net 13,889,000 10,121,000 3,768,000 Depreciation Expense 1,010,000 Total Fixed Assets 15,700,000 11,849,000 3,851,000 Other Operating Expenses 4,183,000 Total Assets 32,249,300$ 27,425,000$ 4,824,300$ Interest Expense 517,000
  • 2. Income Tax Expense 370,000 Total Expenses 42,813,000 Current Liabilities Net Income 1,270,000$ Accounts Payable 10,782,000$ 10,038,000$ 744,000$ Total Current Liabilities 10,782,000 10,038,000 744,000 Long-term Liabilities Bonds Payable 11,236,000 8,370,000 2,866,000 Total Liabilities 22,018,000 18,408,000 3,610,000 Stockholders' Equity Common Stock 2,629,000 2,457,000 172,000 Retained Earnings 8,676,300 7,637,000 1,039,300 Treasury Stock (1,074,000) (1,077,000) 3,000 Total Stockholders' Equity 10,231,300 9,017,000 1,214,300 Total Liabilities & Stockholders' Equity 32,249,300$ 27,425,000$ 4,824,300$ Additionally, SFCC Corporation, Inc. purchased land of $83,000 by financing it 100% with bonds payable during 2012. Requirements. Using the above financial statements, create the
  • 3. following: 1. Answer the following questions: a. How much cash is received from the issuance of bonds payable? b. How much equipment has been purchased this year? c. What is the dollar amount of divends? d. How much cash was exchanged in the purchase of the land? 2. Prepare the statement of cash flows using the indirect method. 3. Prepare the Operating Activities section of statement of cash flows using the direct method. 4. Comment on your thoughts regarding the two different methods. December 31, 2012 and 2011 For Year Ended December 31, 2012 ACCT 122 - Principles of Accounting 2 Project #2 - Statement of Cash Flows SFCC Corporation, Inc. SFCC Corporation, Inc. Comparative Balance Sheet Income Statement