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ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)
Complete these sample exam problems/objective questions and check your answers with the solutions at the end of the review file and identify where you need additional study before the exam.

I.

Statement of Cash Flows

Using the information below, prepare in good form a Statement of Cash Flows for Savage Corporation on the following page. Information from the December 31, 2012 and 2011 balance sheets of Savage
Corporation are presented below.

Cash
Accounts Receivable, net
Inventory
Prepaid Expenses
Long-Term Investments
Land
Buildings and Equipment
Accumulated Depreciation

Accounts Payable
Accrued Liabilities
Bonds Payable
Long-Term Note Payable
Common Stock, $2 par value
Paid-in Capital in Excess of Par Value
Retained Earnings

2012
$ 30,000
410,000
300,000
20,000
50,000
560,000
2,000,000
(800,000)
$ 2,570,000

2011
$ 50,000
460,000
320,000
15,000
25,000
300,000
1,900,000
(770,000)
$ 2,300,000

$ 300,000
40,000
500,000
150,000
200,000
710,000
670,000
$ 2,570,000

$ 120,000
50,000
800,000
0
160,000
550,000
620,000
$ 2,300,000

Additional information about 2012 transactions and events:
(a)

Net income was $110,000.

(b)

Depreciation expense on buildings and equipment was $60,000.

(c)

Sold equipment with a cost of $50,000 and accumulated depreciation of $30,000 for cash of
$17,000.

(d)

Declared and paid cash dividends of $60,000.

(e)

Issued a $150,000 long-term note payable for buildings and equipment.

(f)

Purchased long-term investments for $25,000.

(g)

Paid $300,000 on the bonds payable.

(h)

Issued 20,000 shares of $2 par value common stock for $200,000.

(i)

Purchased land for $260,000.

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SAVAGE CORPORATION
STATEMENT OF CASH FLOWS complete the date line 

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II.