Reference no: EM13486923

Question # 1

The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012, is shown as follows:

The following additional information was taken from the records:

The investments were sold for $105,000 cash.

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $58,140 credit to Retained Earnings for net income.

There was a $36,000 debit to Retained Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities . Use the minus sign to indicate cash outflows, negative amounts or a decrease in cash.

Question # 2 Statement of Cash Flows-Indirect Method

The comparative balance sheet of Juras Equipment Co. for December 31, 2013 and 2012, is as follows:

The following additional information was taken from the records of Juras Equipment:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $129,600 cash.

The common stock was issued for cash.

There was a $228,960 credit to Retained Earnings for net income.

There was a $144,000 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. If needed, use the minus sign to indicate cash outflows, negative amounts or a decrease in cash.