Q.42). P13-36B Prepare statements of cash flows (indirect and direct method) (Learning Objectives 1, 2 & 3):PAGE-770

Barton Publication Company, Inc., has the following comparative balance sheet as of March 31, 2010.

Barton Publication Company, Inc. Balance Sheet As of March 31, 2010 and 2009
Â	2010	2009	Increase (Decrease)
Current assets :	Â	Â	Â
Cash	$ 55,600	$14.700	$40,900
Accounts receivable	51,400	53,300	(1,900)
Inventories	65,400	59,700	5,700
Prepaid expenses	3,700	5,100	(1,400)
Long-term investment	10,000	6,800	3,200
Equipment, net	71,700	70,200	1,500
Land	35,500	97,000	(61,500)
Total assets	293,300	$306,800	(61,500)
Â	Â	Â	Â
Current liabilities	Â	Â	Â
Note payable, short-term	$43,200	$48,900	$(5,700)
Account payable	4,300	3,500	800
Income tax payable	13,700	15,500	(1,800)
Salary payable	9,200	12,400	(3,200)
Interest payable	8,200	7,400	800
Accrued liabilities	2,900	3,400	(500)
Long-term note payable	48,900	93,100	(44,200)
Common stock	69,600	61,700	7,900
Retained earnings	93,300	60,900	32,400
Total liabilities and equity	$293,300	$306,800	$(13,500)

Selected transaction data for the year ended March 31, 2010, include the following :

1. Net income, $77,000
2. Paid long-term note payable with cash, $59,600
3. Cash payments to employees, $43,000
4. Loss on sale of land, $9,600
5. Acquired equipment by issuing long-term note payable, $15,400
6. Cash payments to suppliers, $147,100
7. Cash paid for interest, $4,100
8. Depreciation expense on equipment, $13,900
9. Paid short-term note payable by issuing common stock, $5,700
10. Paid cash dividends, $44,600
11. Received cash for issuance of common stock, $2,200
12. Cash received form customer, $299,400
13. Cash paid for income taxes, $12,000
14. Sold land for cash, $51,900
15. Interest received (in cash), $1,000
16. Purchased long-term investment for cash, $3,200

Requirements

 

1. Prepare the statement of cash flows for Barton Publication Company, Inc., for the year ended March 31, 2010, using the indirect method for operating cash flows. Include a schedule of noncash investing and financing activities. All of the current accounts except short-term notes payable result from operating transactions.
2. Also prepare a supplementary schedule of cash flows from operations using the direct method.