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Green Lantern Company_Statement of cash flows

Dot Image 1ACCT 4111Fall 2013 ACCT 4111 Section: 010Extra Credit AssignmentInstructions:1. Prepare a cash flow statement using the information below. Use BOTH the direct and indirect method to prepare the Operating Activities section (i.e., I expect to see 2 Operating Activities sections, 1 Investing, and 1 Financing).2. Each cash flow item in the statement should be appropriately labeled (use the naming conventions used on the text).3. Show all calculations / work used to prepare the 3 different sections of the cash flow statement (this should be on a separate sheet). You will not receive credit for the assignment if you do not show all work for each number.4. Work should be neat and clearly labeled so that I can follow the calculations corresponding to the cash flow item within the cash flow statement sections.5. Be sure to clearly label and cross-reference each cash flow item on the statement to the calculations that correspond to that cash flow item. E.g., if you have “cash received from customers” in your cash flow statement, label this item as “A” or “1” in the margin and also label the calculations that correspond to this number as “A” or “1” on your calculations worksheet. In this way, I can easily find the calculations you performed for each item on your cash flow statement.6. Appropriately label the cash flow statement and the related sections – follow the format used in the text.7. This is not a group assignment. Individual work is expected. No points will be given if submitted assignment is not your own work.Points: Total of 10 Points? Points are allocated as follows:? 4 points for the Operating Activities – direct? 2 points for the Operating Activities – indirect? 2 points for the Investing Activities, and? 2 points for the Financing Activities? As agreed, points will NOT be awarded for partially correct work in each section. Each section must be accurately completed in its entirety to receive the allocated points (including showing related calculations or T accounts).Due Date: No Exceptions? This assignment is due no later than 6am on Tuesday, November 26, 2013.? There are no exceptions. Late submissions will not be accepted.2Assignment SubmissionSelect 1 of 2 Ways to submit assignment:1. The assignment may be submitted via email. Scanned images that are clearly legible and submitted in PDF format will be accepted. Work in MSExcel or MSWord will also be accepted – with clearly labeled pages/tabs (as appropriate).2. Hardcopy slipped under my office door in RCB 5th Floor room 515 by the due date. Please notify me ahead of time by email me if you choose this option. Note that access is restricted to the RCB building after 7pm daily.AssignmentIn addition to the financial statements presented on the next pages, also find the notes below. Use information as necessary from the notes and the financial statements to construct the cash flow statement for the company for the year ending December 31, 2012Notes:1. All equipment/furniture purchases are made using cash. There were no disposals during the year.2. Land that originally cost $14,000 was sold for $9,800.3. Short-term investments are not classified as a cash equivalent and are non-trade related. Any purchases or sales are made in cash.4. Long-term notes payable and bonds payable are shown in the balance sheet at their face value and indicate repayments or issuances as appropriate.5. Cash dividends were paid to shareholders during the year.32012 2011AssetsCurrent AssetsCash $ 58.8 $ 42.0Accounts Receivable $ 102.2 $ 105.0Short-term Investments $ 56.0 $ 21.0Inventory $ 105.0 $ 98.0Total Current Assets $ 322.0 $ 266.0Property Plant and EquipmentLand $ 70.0 $ 84.0Equipment and Furniture $ 770.0 $ 560.0Less: Accumulated Depreciation $ (161.0) $ 609.0 $ (105.0) $ 455.0Net Property Plant and Equipment $ 679.0 $ 539.0Total Assets $ 1,001.0 $ 805.0LiabilitiesCurrent LiabilitiesAccounts Payable $ 39.2 $ 49.0Salaries Payable $ 2.8 $ 7.0Interest Payable $ 7.0 $ 4.2Income Tax Payable $ 12.6 $ 16.8Total Current Liabilities $ 61.6 $ 77.0Long-term LiabilitiesNotes Payable $ – $ 42.0Bonds Payable $ 224.0 $ 140.0Total Long-term Liabilities $ 224.0 $ 182.0Shareholders’ EquityCommon Stock $ 350.0 $ 280.0Paid in Capital – excess of par $ 176.4 $ 140.0Retained Earnings $ 189.0 $ 126.0Total Shareholders’ Equity $ 715.4 $ 546.0Total Liabilities and Shareholders’ Equity $ 1,001.0 $ 805.0Green Lantern CompanyBalance SheetDecember 31, 2012 and 2011($ in 000s)4RevenuesSales Revenue $ 532.0ExpensesCost of Goods Sold $ 182.0Salaries Expense $ 63.0Depreciation Expense $ 56.0Interest Expense $ 16.8Loss on Sale of Land $ 4.2Income Tax Expense $ 98.0 $ (420.0)Net Income $ 112.0Green Lantern CompanyIncome StatementFor Year Ended December 31, 2012($ in 000s) Purchase this Tutorial @ 14.88