Solution-Prepare statement of cash flows using the indirect

Prepare statement of cash flows using the indirect method

Reference no: EM133088183

Question - Carla Vista Shoes' comparative balance sheet is presented below. Carla Vista reports under ASPE.

CARLA VISTA SHOES Balance Sheet December 31
	2021	2020
Assets
Cash	$32,148	$20,178
Accounts receivable	27,588	25,422
Long-term investments	26,220	18,240
Equipment	68,400	79,800
Accumulated depreciation-equipment	(15,960)	(11,400)
Total	$138,396	$132,240
Liabilities and Shareholders' Equity
Accounts payable	$22,344	$12,654
Notes payable	11,400	34,200
Common shares	68,400	51,300
Retained earnings	36,252	34,086
Total	$138,396	$132,240

Additional Information:

1. Profit was $32,262. Dividends declared and paid were $30,096.

2. Equipment that cost $11,400 and had accumulated depreciation of $1,368 was sold for $4,902.

3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Required - Prepare a statement of cash flows for 2021 using the indirect method.

Reference no: EM133088183

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Prepare statement of cash flows using the indirect method

Reference no: EM133088183

Reference no: EM133088183

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