Statement of Cash Flows (Direct Method)Peoria Corp. just completed another successful year, as indicated by the following income statement

Problem 12-3 Statement of Cash Flows (Direct Method)Peoria Corp. just completed another successful year, as indicated by the following income statement:For the Year EndedDecember 31, 2012Sales revenue $1,250,000Cost of goods sold 700,000Gross profit $ 550,000Operating expenses 150,000Income before interest and taxes $ 400,000Interest expense 25,000Income before taxes $ 375,000Income tax expense 150,000Net income $ 225,000Presented here are comparative balance sheets:December 312012 2011Cash $ 52,000 $ 90,000Accounts receivable 180,000 130,000Inventory 230,000 200,000Prepayments 15,000 25,000Total current assets $ 477,000 $ 445,000Land $ 750,000 $ 600,000Plant and equipment 700,000 500,000Accumulated depreciation (250,000) (200,000)Total long-term assets $1,200,000 $ 900,000Total assets $1,677,000 $1,345,000Accounts payable $ 130,000 $ 148,000Other accrued liabilities 68,000 63,000Income taxes payable 90,000 110,000Total current liabilities $ 288,000 $ 321,000Long-term bank loan payable $ 350,000 $ 300,000Common stock $ 550,000 $ 400,000Retained earnings 489,000 324,000Total stockholders equity $1,039,000 $ 724,000

Total liabilities and stockholders equity $1,677,000 $1,345,000Other information is as follows:a. Dividends of $60,000 were declared and paid during the year.b. Operating expenses include $50,000 of depreciation.c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.Required:Prepare statement of cash flows for 2012 using direct method in the operating activities sectionProblem 12-4 Statement of Cash Flows Indirect MethodRefer to all of the facts in Problem 12-3.RequiredPrepare a statement of cash flows for 2012 using the indirect method in the Operating Activities section.NOTE: Tutorial answers for these 2 problems has NO MEMO, only statement of cash flows/solutionsProblem 12-3 Statement of Cash Flows (Direct Method)Peoria Corp. just completed another successful year, as indicated by the following income statement:For the Year EndedDecember 31, 2012Sales revenue $1,250,000Cost of goods sold 700,000Gross profit $ 550,000Operating expenses 150,000Income before interest and taxes $ 400,000Interest expense 25,000Income before taxes $ 375,000Income tax expense 150,000Net income $ 225,000Presented here are comparative balance sheets:December 312012 2011Cash $ 52,000 $ 90,000Accounts receivable 180,000 130,000Inventory 230,000 200,000Prepayments 15,000 25,000Total current assets $ 477,000 $ 445,000Land $ 750,000 $ 600,000Plant and equipment 700,000 500,000Accumulated depreciation (250,000) (200,000)Total long-term assets $1,200,000 $ 900,000Total assets $1,677,000 $1,345,000Accounts payable $ 130,000 $ 148,000Other accrued liabilities 68,000 63,000Income taxes payable 90,000 110,000Total current liabilities $ 288,000 $ 321,000Long-term bank loan payable $ 350,000 $ 300,000Common stock $ 550,000 $ 400,000Retained earnings 489,000 324,000Total stockholders equity $1,039,000 $ 724,000Total liabilities and stockholders equity $1,677,000 $1,345,000Other information is as follows:a. Dividends of $60,000 were declared and paid during the year.b. Operating expenses include $50,000 of depreciation.c. Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.Required:Prepare statement of cash flows for 2012 using direct method in the operating activities sectionProblem 12-4 Statement of Cash Flows Indirect MethodRefer to all of the facts in Problem 12-3.RequiredPrepare a statement of cash flows for 2012 using the indirect method in the Operating Activities section.NOTE: Tutorial answers for these 2 problems has NO MEMO, only statement of cash flows/solutions

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