Complete the following statement of cash flows:
Estimate an indirect method statement of cash flows for 2011 onthe form provided below. Assume net income (profit) for 2011 willbe $4,230 and property, plant and equipment with a historical cost$1,296 and accumulated depreciation of $1,138 will be sold for cashof $303. Use only the information on this page and the forecastedbalance sheet on the following page. You donât have to worry aboutaccounts that donât change on the balance sheet.
FORECASTED STATEMENT OF CASH FLOWS
Cash flow from operating activities 12/31/2011
Profit
Depreciation and amortization
Gain on sale of property, plant and equipment
Change in assets and liabilities
Receivableââtrade
Prepaid expenses
Inventories
Accounts payable
Accrued wages and salaries
Customer advances
Net cash provided by operating activities
Cash flow from investing activities
Capital expenditures
Proceeds from disposal of property, plant and equipment
Net cash provided by (used for) investing activities
Cash flow from financing activities
Dividends paid
Share repurchases for treasury
Payments on debt
Net cash provided by (used for) financing activities
Change in cash
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FORECASTED BALANCE SHEET FOR PROBLEM I ONLY
Assets 12-31-2011/12-31-2010/Change
Current assets:
Cash and equivalents $3,821/ $3,592/ $229
Receivablesââtrade, net 8,808 /8,494/314
Receivablesââfinance, net 8,298 /8,298 /0
Prepaid expenses 1,745 1,839 â94
Inventories 8,823 /9,587/ â764
Total current assets $31,495/ $31,810/ â$315
Property, plant and equip., net of accumulated 13,104/ 12,539/565
deprc of $13,946 in 2011 & $12,673 in 2010
Receivablesââtrade 744/ 793/ â49
Receivablesââfinance 11,264/ 11,264/ 0
Goodwill 2,614 /2,614/ 0
Other noncurrent assets 5,000 /5,000/ 0
Total assets $64,221 /$64,020/ $201
Liabilities
Current liabilities:
Current portion of longâterm debt:
Machinery and Engines 685/ 699/ â14
Financial Products 7,282 /7,282/ 0
Accounts payable 4,431/ 5,856/ â1,425
Accrued wages and salaries 1,213 /1,670/ â457
Customer advances 1,911/ 1,831/ 80
Other current liabilities 4,682/ 4,682/ 0
Total current liabilities $20,204/ $22,020/ â$1,816
Longâterm debt
Machinery and Engines 4,103/ 4,505/ â402
Financial Products 15,932/ 15,932/ 0
Liability for postemployment benefits 7,584/ 7,584/ 0
Other liabilities 2,654/ 2,654/ 0
Total liabilities $50,477/ $52,695/ â$2,218
Stockholders' equity
Contributed capital 4,389/ 4,389/ 0
Treasury stock -11,108/ â10,397/ â711
Profit employed in the business 24,514/ 21,384/ 3,130
Accumulated &compre income â4,051/ â4,051/ 0
Total stockholders' equity $13,744/ $11,325/ $2,419
Total liabilities &stockholders' equity $64,221/ $64,020/$201
