E23-13 (SCF—Direct Method) Andrews Inc., a greeting card company, had the following statements prepared as of December

E23-13 (SCF—Direct Method) Andrews Inc., a greeting card company, had the following statements prepared as of December 31, 2015.
ANDREWS INC. COMPARATIVE STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2015 AND 2014 ——————————————————-12/31/15—————————————-12/31/14 Equipment —————————————-€154,000—————————————€130,000
Accumulated depr.-equipment—————(35,000)—————————————-(25,000) Copyrights——————————————46,000——————————————-50,000
Inventory——————————————–40,000——————————————-60,000
Prepaid rent—————————————–5,000——————————————–4,000
Accounts receivable——————————62,000——————————————49,000
Short-term investments (trading)—————35,000—————————————–18,000
Cash—————————————————–6,000——————————————-9,000 Total assets——————————————€313,000—————————————€295,000
Share capital-ordinary,€10 par—————–€100,000————————————–€100,000
Share premium-ordinary————————–30,000—————————————–30,000
Retained earnings———————————-57,000——————————————36,000
Long-term loans payable————————-60,000——————————————67,000
Accounts payable———————————-46,000——————————————-42,000
Income taxes payable—————————–4,000———————————————6,000
Salaries and wages payable———————8,000——————————————–4,000
Short-term loans payable————————-8,000——————————————–10,000
Total equity and liabilities———————–€313,000——————————————€295,000
ANDREWS INC. ALL INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2015 Sales revenue————————————-€338,150
Cost of goods sold——————————–175,000 Gross margin—————————————163,150
Operating expenses——————————120,000 Operating income———————————-43,150
Interest expense—————–€11,400 Gain on sale of equipment—–2,000———–9,400
Income before tax———————————-33,750 Income tax expense——————————–6,750 Net income——————————————€ 27,000
Additional information: 1. Dividends in the amount of €6,000 were declared and paid during 2015. 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have on the investments during the year.
4. Equipment that had a cost of €30,000 and was 70% depreciated was sold during 2015. Instructions Prepare a statement of cash flows using the direct method.


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