Acc/291 Wk 8 Assignment Essay

293 WordsFeb 21, 20142 Pages
E 13-8 TAGUCHI COMPANY Statement of Cash Flows—Indirect Method For the Year Ended December 31, 2011 Cash Flows from operating activities Net income 103,000 Adjustments to reconcile net income to net cash Provided by operating activities: Depreciation expense 34,000 Increase in accounts receivable (9,000) Decrease in inventory 19,000 Decrease in accounts payable (8,000) 36,000 Net cash provided by operating activities 139,000 Cash flows from investing activities Sale of land 25,000 Purchase of machinery (60,000) Net cash used by investing activities (35,000) Cash flows from financing activities Redemption of bonds (50,000) Sale of common stock 42,000 Payment of dividends (45,000) Net cash provided by financing activities (53,000) Net increase in cash 51,000 Cash at beginning of period 22,000 Cash at end of period 73,000 A. Horizontal Analysis 2012 2011 Amount Percent Assets Current assets $74,000 80,000 (6,000) (7.5) % Plant Assets 99,000 90,000 9,000 10% Intangibles 27,000 40,000 (13,000) (32.5) % Total Assets 200,000 210,000 (10,000) (4.8) % Liabilities and Stockholder's Equity Current Liabilities $42,000 48,000 (6,000) (12.5) % Long-term Liabilities 143,000 150,000 (7,000) (4.7) % Stock holders
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