Reposed, Inc._Statement of Cash Flows

Shown below are the comparative financial statements for Reposed, Inc. for the year ended December 31, 2013, and December 31, 2012.

Reposed, Inc.

Income Statement

For the Period Ended December 31

2012 2011 change

Sales $ 6,601,000 $ 2,402,500 $ 4,198,500

Cost of goods sold 3,960,600 1,441,500 $ 2,519,100

Gross profit 2,640,400 961,000 $ 1,679,400

Selling and administration expense $ 726,110 $ 264,275 461,835

Loss on sale of land 50,000 50,000

Interest expense 273,988 1,050,098 42,152 306,427 231,836

Net income before taxes 1,590,302 654,573 $ 935,729

Income tax expense 363,055 132,138 $ 230,917

Net income (loss) $ 1,227,247 $ 522,435 $ 704,812

Earnings (loss) per share $ 11.16 $ 5.22

2012 2011 change

Net income (loss) $ 1,227,247 $ 522,435 $ 704,812

Unrealized holding gains (losses) 422,625 28,101 $ 394,524

Total comprehensive income $ 1,649,872 $ 550,536 $ 1,099,336

Reposed, Inc.

Income Statement

For the Period Ended December 31

Reposed, Inc.

Comprehensive Income Statement

For the Period Ended December 31

University of Michigan Dearborn

ACC 356 Winter 2014

Quiz 6

Name_______________________________________________________________________________________________________________

Shown below are the comparative financial statements for Reposed, Inc. for the year ended December 31, 2013, and December 31, 2012.2 | P a g e

2012 2011 change

Beginning retained earnings $ 13,130,148 $ 12,708,075 $ 422,073

Net income (loss) 1,227,247 522,435 $ 704,812

14,357,395 13,230,510 $ 1,126,885

Total dividends 161,767 100,362 $ 61,405

Ending retained earnings $ 14,195,628 $ 13,130,148 $ 1,065,480

2012 2011 change

Beginning accumulated other comprehensive income $ 329,186 $ 301,085 $ 28,101

Other comprehensive income 422,625 28,101 $ 394,524

Ending accumulated other comprehensive income $ 751,811 $ 329,186 $ 422,625

For the Period Ended December 31

Reposed, Inc.

Retained Earnings Statement

For the Period Ended December 31

Reposed, Inc.

Statement of Accumulated Other Comprehensive Income3 | P a g e

Quiz 6 Winter 2014

2012 2011 change

Assets

Cash $ 70,000 $ 50,000 $ 20,000

Available for sale securities 814,625 392,000 422,625

Accounts receivable $ 322,000 $ 155,000 167,000

(28,980) 293,020 (13,950) 141,050 (15,030)

Inventory 332,500 160,000 172,500

Current assets 1,510,145 743,050

Long-term investments 1,221,938 352,800 869,138

Property, plant and equipment

Land $ 8,731,800 6,468,000 2,263,800

Equipment 16,062,948 $ 8,408,400 7,654,548

Building 2,156,000 2,156,000 –

(1,320,550) 25,630,198 (1,056,440) 15,975,960 (264,110)

Goodwill 3,557,400 2,371,600 1,185,800

Total long-term assets 30,409,536 18,700,360

Total assets $ 31,919,681 $ 19,443,410

Less: Accumulated

depreciation

Reposed, Inc.

Balance Sheet

December 31

Less: Allowance for uncollectible accounts4 | P a g e

Reposed, Inc.

Balance Sheet

December 31

2012 2011 change

Equities

Liabilities

Accounts payable $ 3,630,550 $ 1,081,125 2,549,425

Wages payable 1,452,220 324,338 1,127,882

Unearned service revenue 1,545,600 248,000 1,297,600

Current liabilities $ 6,628,370 $ 1,653,463

Note Payable (5 years) – 702,533 (702,533)

Bonds payable 20-years 4,566,465 4,566,465

Deferred tax liability – long-term 439,083 175,633 263,450

Total liabilities 11,633,918 2,531,629

Stockholders’ equity

Preferred stock $ – $ 140,507 (140,507)

Common stock 3,235,348 2,007,236 1,228,112

Additional-paid-in-capital 2,588,278 1,605,789 982,489

Total contributed capital 5,823,626 3,753,532

Ending accumulated other comprehensive income 751,811 329,186 422,625

Ending retained earnings 14,195,628 13,130,148 1,065,480

20,771,065 17,212,866

Less Treasury stock (485,302) (301,085) (184,217)

Total stockholders’ equity 20,285,763 16,911,781

Total equity $ 31,919,681 $ 19,443,410 $ – The only sale of long-term property was a section of land with a book value of $200,000 which sold for $150,000.

Land and equipment were purchased. Preferred stock was sold at par.

Instructions:

Prepare a Statement of Cash Flows for the year ended December 31, 2013. Use the indirect method to calculate cash from operations

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