Selected financial statement info and additional data for Russellville Co. is presented below. All accounts have normal balances. Prepare a statement of cash flows for the year ending December 31, 2014, including necessary disclosures.
Additional data for 2014:
1. Land was sold at its original cost
2. Dividends of $81,600 were paid
3. Equipment of $50,000 was purchased by issuing common stock
Solution
CASH FLOW STATEMENT of Russellvile Co for the year ending 31st December 2014
EBIT (Sales-Cost of Goods Sold-Dep ) 220200
Depreciation Expense 31600
Increase in Receivables (60200 )
Increase in Inventory (38600 )
Increase in Accounts Payable 35600
Increase in Notes Payable 96600
CASH FROM OPERATIONS 285200
Cash from Sale of Land 37800
Cash used in Equipment purchase ( 235600)
CASH USED IN INVESTING ACTIVITIES (197800)
Dividend paid (81600)
Stock issued for cash 17200
CASH USED IN FINANCE ACTIVITIES (64400)
NET CHANGE IN CASH 23000
Opening Cash Balance 42000
Closing Cash Balance 65000
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Selected financial statement info and additional data for Russellville.docx
1. Selected financial statement info and additional data for Russellville Co. is presented below. All
accounts have normal balances. Prepare a statement of cash flows for the year ending December
31, 2014, including necessary disclosures.
Additional data for 2014:
1. Land was sold at its original cost
2. Dividends of $81,600 were paid
3. Equipment of $50,000 was purchased by issuing common stock
2013 2014 Inc./(Dec.)
Cash $42,000 $65,000 23,000
Accounts Receivable (net) 84,000 144,200 60,200
Inventory 168,000 206,600 38,600
Land 58,800 21,000 (37,800)
Equipment 504,000 789,600 285,600
Accumulated depreciation 84,000 115,600 31,600
Accounts payable 50,400 86,000 35,600
Notes payable 235,200 331,800 96,600
Common stock 420,000 487,200 67,200
Retained earnings 67,200 205,800 138,600
Sales 400,000
Cost of goods sold 148,200
Depreciation expense 31,600
Solution
CASH FLOW STATEMENT of Russellvile Co for the year ending 31st December 2014
EBIT (Sales-Cost of Goods Sold-Dep ) 220200
2. Depreciation Expense 31600
Increase in Receivables (60200 )
Increase in Inventory (38600 )
Increase in Accounts Payable 35600
Increase in Notes Payable 96600
CASH FROM OPERATIONS 285200
Cash from Sale of Land 37800
Cash used in Equipment purchase ( 235600)
CASH USED IN INVESTING ACTIVITIES (197800)
Dividend paid (81600)
Stock issued for cash 17200
CASH USED IN FINANCE ACTIVITIES (64400)
NET CHANGE IN CASH 23000
Opening Cash Balance 42000
Closing Cash Balance 65000
