Preparation of cash flows statement

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Reference no: EM1313808

Preparation of Cash Flows Statement in Indirect method.

The comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007, is as follows:
Statement of cash ___________________________________ June 30, 2008 ________ June 30,2007

Flows-indirect method	Assests
Obj. 2 Cash.........................................................	$34,700	$23,500
Net cash flow from Accounts receivable (net).....................	101,600	92,300
Operating activities, Inventories.......................................	146,300	142,100
$72,200 Investments.................................................	0	50,000
Equipment....................................................	215,000	175,000
Accumulated depreciation.......................	-48,600	-41,300
	$594,000	$442,100
Liabilities and Stockholders'	Equity
Accounts payable (merchandise creditors)..	$100,900	$95,200
Accrued expenses (operating expenses)........	15,000	13,200
Dividends payable..............................................	12,500	10,000
Common stock, $1 par......................................	56,000	50,000
Paid-in capital in excess of par-common stock..	220,000	100,000
Retained earnings.................................................	189,000	173,700
	$594,000	$442,000

The following additional information was taken from the records of Oak and Tile Flooring Co.:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $45,000 cash.
d. The common stock was issued for cash.
e. There was a $65,900 credit to Retained Earnings for net income.
f. There was a $50,000 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.

Reference no: EM1313808

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