Sealy Company (income statement) For year ended March31,2010
Sales: $363,000
expenses:
cost of goods sold $248,000
salaries 65,250
rent 6,000
depretiation 17,000
other operating expenses15,000 351,250
Net income $11,750
Sealy Company (balance sheet) For year ended March 31,2010, and2009
20102009
current assets
cash $49,000 $16,000
accounts receivable 46,000 28,000
inventory 130,000 135,000
Pepaid rent 14,000 0
Total currentassets $239,000 $179,000
Long term assets:
equipment 158,000 148,000
Accumulated depreciation 98,500 81,500
Total long term assets 59,500 66,500
Total assets $298,500 $245,500
current liabilities
accounts payable 38,000 25,000
salaries payable 15,000 5,500
accured liabilities(operating expenses) 17,500 4,000
Notes payable 45,000 0
Total current liabilities $115,500 $34,500
Long term liabilities
notes payable 0 35,000
Total liabilities 115,500 69,500
Owners equity
Sealy, capital 183,000 176,000
Total liabilities and owners equity $298,500---------------------------$245,500
Question: Prepare Sealy's statement of cashflows usingthe indirect method.
Sealy Company (income statement) For year ended March31,2010
Sales: $363,000
expenses:
cost of goods sold $248,000
salaries 65,250
rent 6,000
depretiation 17,000
other operating expenses15,000 351,250
Net income $11,750
Sealy Company (balance sheet) For year ended March 31,2010, and2009
20102009
current assets
cash $49,000 $16,000
accounts receivable 46,000 28,000
inventory 130,000 135,000
Pepaid rent 14,000 0
Total currentassets $239,000 $179,000
Long term assets:
equipment 158,000 148,000
Accumulated depreciation 98,500 81,500
Total long term assets 59,500 66,500
Total assets $298,500 $245,500
current liabilities
accounts payable 38,000 25,000
salaries payable 15,000 5,500
accured liabilities(operating expenses) 17,500 4,000
Notes payable 45,000 0
Total current liabilities $115,500 $34,500
Long term liabilities
notes payable 0 35,000
Total liabilities 115,500 69,500
Owners equity
Sealy, capital 183,000 176,000
Total liabilities and owners equity $298,500---------------------------$245,500
Question: Prepare Sealy's statement of cashflows usingthe indirect method.
