Reference no: EM13529459
Preparing the statement of cash flows-indirect method The income statement of Minerals Plus, Inc., follows:
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MINERALS PLUS, INC.
Income Statement
Year Ended September 30, 2012
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Revenues:
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Service revenue
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$ 235,000
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Expenses:
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Cost of goods sold
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$ 97,000
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Salary expense
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57,000
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Depreciation expense
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26,000
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Income tax expense
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4,000
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184,000
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Net income
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$ 51,000
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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 $8,000.
f. From the balance sheet:
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September 30,
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2012
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2011
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Current Assets:
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Cash
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$ 30,000
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$ 8,000
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Accounts receivable
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41,000
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59,000
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Inventory
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97,000
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93,000
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Current Liabilities:
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Accounts payable
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$ 30,000
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$ 17,000
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Accrued liabilities
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11,000
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24,000
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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.