Reference no: EM132130226

Question - HORNGREN'S Financial & Managerial Accounting

Preparing the statement of cash flows-indirect method

Accountants for Carlson, Inc. have assembled the following data for the year ended December 31, 2016:

2016 2015

Current Assets:

Cash $ 89,200 18,000

Accounts Receivable 64,600 68,800 Merchandise Inventory 85,000 77,000

Current Liabilities:

Accounts Payable $ 57,500 $ 55,400 Income Tax Payable 14,700 16,200

Transaction Data for 2016:

Issuance of common stock for cash $ 38,000

Depreciation expense 21,000

Purchase of equipment with cash 73,000

Acquisition of land by issuing long-term notes payable 122,000

Book value of building sold 55,000

Payment of notes payable $ 51,100

Payment of cash dividends 46,000

Issuance of notes payable to borrow cash 61,000

Gain on sale of building 2,000

Net income 69,500

REQUIREMENTS - Prepare Carlson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.