Maurice Tutor
$15/per page/Negotiable
Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company.
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ORWELL, INC. Comparative Balance Sheets December 31,2011 |
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|
 |
2011 |
2010 |
|
Assets |
 |
 |
|
Cash |
$ 95,800 |
$ 25,000 |
|
Accounts receivable, net |
42,000 |
52,000 |
|
Inventory |
86,800 |
96,800 |
|
Prepaid expenses |
6,400 |
5,200 |
|
Furniture |
110,000 |
120,000 |
|
Accumdepreciation—Furniture |
(18,000) |
(10,000) |
|
Total assets |
$323,000 |
$289,000 |
|
Liabilities and Equity |
 |
 |
|
Accounts payable |
$ 16,000 |
$ 22,000 |
|
Wages payable |
10,000 |
6,000 |
|
Income taxes payable |
2,400 |
3,600 |
|
Notes payable (long-term) |
30,000 |
70,000 |
|
Common stock, $5 par value |
230,000 |
180,000 |
|
Retained earnings |
34,600 |
7,400 |
|
Total liabilities and equity |
$323,000 |
$289,000 |
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ORWELL, INC. Income Statement For Year Ended December 31,2011 |
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|
Sales |
 |
$468,000 |
|
Cost of goods sold |
 |
312,000 |
|
Gross profit |
 |
156,000 |
|
Operating expenses |
 |
 |
|
Depreciation expense |
$38,600 |
 |
|
Other expenses |
57,000 |
95,600 |
|
Income before taxes |
 |
60,400 |
|
Income taxes expense |
 |
24,600 |
|
Net income |
 |
$ 35,800 |
Refer to the data in QS 16-9.
Furniture costing $54,000 is sold at its book value in 2011. Acquisitions of furniture total $44,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?