Prepare a statement of cash flow

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Reference no: EM131775373

Edwards Inc has prepare the following comparative balance sheets for 2003 and 2004:

                                                                         2004                     2003

Cash                                                              198000                  102000

Receivables                                                  106000                  78000

Inventory                                                       100000                 120000

Prepaid Expense                                         12000                     18000

Building                                                         840000                700000

Accu Depr Building                                     (300000)              (250000)

Equipment                                                   200000                  300000

Accu Depr Equipment                               (120000)                (140000)

Patent                                                           102000                   116000

                                                                     ========               ========

                                                                     1138000                  1044000

 

Accounts Payable                                     102000                    112000

Accrued Liabilities                                    40000                      88000

Mortgage Payable                                    0                                400000

Preferred Stock                                      350000                        0 

Additional paid in capital preferred       80000                         0

Common Stock                                       480000                      400000

Retained Earnings                                  86000                         44000

                                                                 =========                =========

                                                                1058000                     1044000

1) The depreciation on the building was 50,000 and on the equipment it was 20,000. There were no purchases of equipment, and equipment was sold for 70,000.

2) Net income for the year was 134,000

From the information above, prepare a statement of cash flows (indirect method) for Edwards inc for the year ended December 31, 2004.

Reference no: EM131775373

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