(SCF\u00e2\u0080\u0094Indirect Method) The following
\nare Sullivan Corp.\u00e2\u0080\u0099s comparative balance sheet accounts at December 31, 2012
\nand 2011, with a column showing the increase (decrease) from 2011 to 2012.<\/p>\n
COMPARATIVE BALANCE SHEETS<\/p>\n
2012<\/p>\n
2011<\/p>\n
Increase
\n (Decrease)<\/p>\n
Cash<\/p>\n
$ 815,000<\/p>\n
$ 700,000<\/p>\n
$115,000<\/p>\n
Accounts receivable<\/p>\n
1,128,000<\/p>\n
1,168,000<\/p>\n
(40,000)<\/p>\n
Inventory<\/p>\n
1,850,000<\/p>\n
1,715,000<\/p>\n
135,000<\/p>\n
Property, plant, and equipment<\/p>\n
3,307,000<\/p>\n
2,967,000<\/p>\n
340,000<\/p>\n
Accumulated depreciation<\/p>\n
(1,165,000)<\/p>\n
(1,040,000)<\/p>\n
(125,000)<\/p>\n
Investment in Myers Co.<\/p>\n
310,000<\/p>\n
275,000<\/p>\n
35,000<\/p>\n
Loan receivable<\/p>\n
250,000<\/p>\n
\u00e2\u0080\u0094<\/p>\n
250,000<\/p>\n
Total assets<\/p>\n
$6,495,000<\/p>\n
$5,785,000<\/p>\n
$710,000<\/p>\n
Accounts payable<\/p>\n
$1,015,000<\/p>\n
$ 955,000<\/p>\n
$ 60,000<\/p>\n
Income taxes payable<\/p>\n
30,000<\/p>\n
50,000<\/p>\n
(20,000)<\/p>\n
Dividends payable<\/p>\n
80,000<\/p>\n
100,000<\/p>\n
(20,000)<\/p>\n
Capital lease obligation<\/p>\n
400,000<\/p>\n
\u00e2\u0080\u0094<\/p>\n
400,000<\/p>\n
Common stock, $1 par<\/p>\n
500,000<\/p>\n
500,000<\/p>\n
\u00e2\u0080\u0094<\/p>\n
Paid-in capital in excess of
\n par\u00e2\u0080\u0094common stock<\/p>\n
1,500,000<\/p>\n
1,500,000<\/p>\n
\u00e2\u0080\u0094<\/p>\n
Retained earnings<\/p>\n
2,970,000<\/p>\n
2,680,000<\/p>\n
290,000<\/p>\n
Total liabilities and stockholders\u00e2\u0080\u0099
\n equity<\/p>\n
$6,495,000<\/p>\n
$5,785,000<\/p>\n
$710,000<\/p>\n
Additional information:
\n1. On December 31, 2011, Sullivan
\nacquired 25% of Myers Co.\u00e2\u0080\u0099s common stock for $275,000. On that date, the
\ncarrying value of Myers\u00e2\u0080\u0099s assets and liabilities, which approximated their fair
\nvalues, was $1,100,000. Myers reported income of $140,000 for the year ended
\nDecember 31, 2012. No dividend was paid on Myers\u00e2\u0080\u0099s common stock during the
\nyear.
\n2. During 2012, Sullivan loaned
\n$300,000 to TLC Co., an unrelated company. TLC made the first semiannual
\nprincipal repayment of $50,000, plus interest at 10%, on December 31, 2012.
\n3. On January 2, 2012, Sullivan sold
\nequipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash.
\n4. On December 31, 2012, Sullivan
\nentered into a capital lease for an office building. The present value of the
\nannual rental payments is $400,000, which equals the fair value of the
\nbuilding. Sullivan made the first rental payment of $60,000 when due on January
\n2, 2013.
\n5. Net income for 2012 was $370,000.
\n6. Sullivan declared and paid cash
\ndividends for 2012 and 2011 as shown on the next page.<\/p>\n
2012<\/p>\n
2011<\/p>\n
Declared<\/p>\n
December 15, 2012<\/p>\n
December 15, 2011<\/p>\n
Paid<\/p>\n
February 28, 2013<\/p>\n
February 28, 2012<\/p>\n
Amount<\/p>\n
$80,000<\/p>\n
$100,000<\/p>\n
Instructions
\nPrepare a statement of cash flows for
\nSullivan Corp. for the year ended December 31, 2012, using the indirect method.<\/p>\n","protected":false},"excerpt":{"rendered":"
(SCF\u00e2\u0080\u0094Indirect Method) The following are Sullivan Corp.\u00e2\u0080\u0099s comparative balance sheet accounts at December 31, 2012 and 2011, with a column showing the increase (decrease) from\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8827,10099,10540,10536,10892,10538,10539,10537,10891],"tags":[10549,10616,10615,7687,10627,8857,10552,10295,10548,10622,8907],"class_list":["post-130107","post","type-post","status-publish","format-standard","hentry","category-australia-essays","category-buy-essay","category-cheap-essay-writers","category-get-assignments-done","category-page-paper","category-phd-essay-writers","category-research-paper-writing-service-for-any-topic","category-study-bay-essay","category-write-my-assignment-ireland","tag-ai-plagiarism-free-essay-writing-tool","tag-australian-best-tutors","tag-best-trans-tutors","tag-buy-essay-uk","tag-cheap-dissertation-writer","tag-help-with-writing-an-essay","tag-help-write-my-paper-ai-free","tag-homework-for-you","tag-online-essay-writers","tag-phd-essays","tag-write-my-essay-for-me"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=130107"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/130107\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=130107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=130107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=130107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}