Question: Use the Summer Time Supply Corp. data
Use the Summer Time Supply Corp. data from Problem 12-62A.
Data in Problem 12-62A
The 2012 and 2011 comparative balance sheets and 2012 income statement of Summer Time Supply Corp. follow:
Requirements
1. Prepare the 2012 statement of cash flows by using the direct method.
2. How will what you learned in this problem help you evaluate an investment?
Transcribed Image Text:
Summer Time Supply Corp. Comparative Balance Sheets December 31, Increase 2012 2011 (Decrease) Current assets: Cash and cash equivalents Accounts receivable $ 67,200 $ 1,900 $ 65,300 54,700 45,000 9,700 Inventories 53,400 52,200 1,200 (2,600) Prepaid expenses 2,400 5,000 Plant assets: Land 49,200 30,800 18,400 Equipment, net 52,900 $279,800 49,600 $184,500 3,300 Total assets $ 95,300 Current liabilities: $ 35,500 24,000 22,100 $ 26,900 $ 8,600 10,900 (1,600) Accounts payable Salary payable Other accrued liabilities Long-term liabilities: Notes payable Stockholders' equity: Common stock, no-par 13,100 23,700 49,000 30,000 19,000 89,000 64,000 25,000 Retained earnings Total liabilities and Stockholders' equity 60,200 $279,800 26,800 $184,500 33,400 $ 95,300 Summer Time Supply Corp. Income Statement Year Ended December 31, 2012 Revenues: Sales revenue $441,000 Expenses: Cost of goods sold $185,500 Salary expense 76,700 16,100 Depreciation expense Other operating expense 50,000 Interest expense 24,100 Income tax expense 28,500 Total expenses 380,900 Net income $ 60,100
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