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Topic 1 Mini Case Instructions: Prepare a statement of cash flows for the Hensle Corporation. HENSLE 1 answer below » Topic 1 Mini Case Instructions: Prepare a statement of cash flows for the Hensle Corporation. HENSLE CORPORATION Income Statement For the Year Ended December 31, 2010 Sales ……………………………………………………………………. $2,200,000 Cost of goods sold………………………………………………….. 1,300,000 Gross profits……………………………………………………… 900,000 Selling and administrative expense …………………………… 420,000 Depreciation expense……………………………………………… 150,000 View complete question » Topic 1 Mini Case Instructions: Prepare a statement of cash flows for the Hensle Corporation. HENSLE CORPORATION Income Statement For the Year Ended December 31, 2010 Sales ……………………………………………………………………. $2,200,000 Cost of goods sold………………………………………………….. 1,300,000 Gross profits……………………………………………………… 900,000 Selling and administrative expense …………………………… 420,000 Depreciation expense……………………………………………… 150,000 Operating income………………………………………………. 330,000 Interest expense …………………………………………………….. 90,000 Earnings before taxes ………………………………………… 240,000 Taxes……………………………………………………………………. 80,000 Earnings after taxes …………………………………………… 160,000 Preferred stock dividends ………………………………………….. 10,000 Earnings available to common stockholders ………………. $ 150,000 Shares outstanding ………………………………………………… 120,000 Earnings per share …………………………………………………. $ 1.25 Statement of Retained Earnings For the Year Ended December 31, 2010 Retained earnings, balance, January 1, 2010 …………….. $500,000 Add: Earnings available to common stockholders, 2010 150,000 Deduct: Cash dividends declared and paid in 2010 ….. 50,000 Retained earnings, balance, December 31, 2010 ……….. $600,000 Comparative Balance Sheets For 2009 and 2010 Year-End 2009 Year-End 2010 Assets Current assets: Cash………………………………………………………………… $ 70,000 $100,000 Accounts receivable (net) …………………………………… 300,000 350,000 Inventory……………………………………………………………….. 410,000 430,000 Prepaid expenses…………………………………………………… 50,000 30,000 Total current assets …………………………………………… 830,000 910,000 Investments (long-term securities) ……………………………. 80,000 70,000 Plant and equipment ………………………………………………. 2,000,000 2,400,000 Less: Accumulated depreciation ………………………….. 1,000,000 1,150,000 _x000C_Net plant and equipment …………………………………………. 1,000,000 1,250,000 Total assets …………………………………………………………… $1,910,000 $2,230,000 _x000C_Liabilities and Stockholders’ Equity Current liabilities: Accounts payable………………………………………………. $ 250,000 $ 440,000 Notes payable …………………………………………………… 400,000 400,000 Accrued expenses …………………………………………….. 70,000 50,000 Total current liabilities………………………………………. 720,000 890,000 Long-term liabilities: Bonds payable, 2010 …………………………………………. 70,000 120,000 Total liabilities ………..
