Reference no: EM13529459

Preparing the statement of cash flows-indirect method The income statement of Minerals Plus, Inc., follows:

MINERALS PLUS, INC. Income Statement Year Ended September 30, 2012
Revenues:
Service revenue		$ 235,000
Expenses:
Cost of goods sold	$ 97,000
Salary expense	57,000
Depreciation expense	26,000
Income tax expense	4,000	184,000
Net income		$ 51,000

Additional data follow:

a. Acquisition of plant assets is $118,000. Of this amount, $100,000 is paid in cash and $18,000 by signing a note payable.

b. Cash receipt from sale of land totals $28,000. There was no gain or loss.

c. Cash receipts from issuance of common stock total $29,000.

d. Payment of note payable is $18,000.

e. Payment of dividends is $8,000.

f. From the balance sheet:

	September 30,
	2012		2011
Current Assets:
Cash	$ 30,000		$ 8,000
Accounts receivable	41,000		59,000
Inventory	97,000		93,000
Current Liabilities:
Accounts payable	$ 30,000		$ 17,000
Accrued liabilities	11,000		24,000

Requirement

1. Prepare Minerals Plus's statement of cash flows for the year ended September 30, 2012, using the indirect method. Include a separate section for noncash investing and financing activities.