Make the statement of cash flow using the indirect method

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Question - Raccoon Collectables provided the following balance sheet and income statement information:

Balance Sheet at December 31:

 

Year 2

Year 1

Cash

$1,400

$7,200

Accounts receivable

13,500

12,000

Inventory

11,800

4,500

Prepaid insurance

1,200

900

Equipment, net

36,500

38,000

Total assets

$64,400

$62,600

Accounts payable

$13,100

$12,600

Wages payable

7,400

8,000

Long-term note payable

17,000

26,700

Common stock

16,000

8,000

Retained earnings

10,900

7,300

Total liabilities & shareholders' equity

$64,400

$62,600

Income Statement for Year 2:

Sales $121,800

Cost of goods sold 49,500

Depreciation expense 6,800

Other operating expenses 27,800

Interest expense 2,100

Income taxes expense 8,000

Net income $27,600

Required - Using the financial data for Raccoon Collectables, make the statement of cash flow using the indirect method for Year 2.

Reference no: EM132722970

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