Module 4: Critical Thinking Assignment: See 2 pages of instructions, AND link to video instructions:
Option #1: Operating Activities Analysis Exercises and Problems
Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect method.
Please watch the video (recorded lecture, 39 minutes) to help with understanding.
https://csuglobal.instructure.com/courses/56947/files/3388591/download
Summer Peebles, Inc.
Income Statement Year Ending December 31, 2014
Sales
$1,000.00
Cost of Goods Sold
-$650.00
Depreciation Expense
-$100.00
Sales and General Expense
-$100.00
Interest Expense
-$50.00
Income Tax Expense
-$40.00
Net Income
$60.00
Summer Peebles, Inc.
Balance Sheets as of December 31, 2013 and 2014
Assets
2013
2014
Cash
$50.00
$60.00
Accounts Receivable, Net
$500.00
$520.00
Inventory
$750.00
$770.00
Current Assets
$1,300.00
$1,350.00
Fixed Assets, Net
$500.00
$550.00
Total Assets
$1,800.00
$1,900.00
Liabilities and Equity
Notes Payable to Banks
$100.00
$75.00
Accounts Payable
$590.00
$615.00
Interest Payable
$10.00
$20.00
Current Liabilities
$700.00
$710.00
Long-Term Debt
$300.00
$350.00
Deferred Income Tax
$300.00
$310.00
Capital Stock
$400.00
$400.00
