Solution-Prepare a statement of cash flows for the year

Prepare a statement of cash flows for the year

Assignment Help Accounting Basics

Reference no: EM131840523

Problem - The balance sheet and income statement for a company are provided below, along with selected additional financial information.

	Current Year	Prior Year
Balance Sheet
Cash	79,250	73,840
Accounts Receivable	18,820	24,185
Merchandise Inventory	15,354	6,976
Property and equipment	285,735	175,000
Accumulated Depreciation	(89,000)	(72,630)
Total Assets	310,159	207,371
Accounts Payable	8,500	18,200
Wages Payable	3,208	2,194
Notes payable, long-term	72,840	86,100
Contributed capital	84,255	65,980
Retained earnings	141,356	34,897
Total Liabilities and Stockholders' Equity	310,159	207,371

Income Statement
Sales	284,955
Cost of goods sold	91,357
Wages	32,187
Depreciation expense	16,370
Other Expense	22,358
Net income	122,683

Additional data:
a) Purchased equipment for cash $100,735

b) Paid $13,260 on a long-term loan

c) Issued new shares of stock for $18,275 cash

d) Dividends of $16,224 were declared and paid.

Required: Prepare a statement of cash flows for the year using the indirect method.

Reference no: EM131840523

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Prepare a statement of cash flows for the year

Reference no: EM131840523

Reference no: EM131840523

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