Prepare the statement of cash flows for biden company

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Reference no: EM131840153

Question - The followings are accounting items taken from the records of the Biden Company for 2012:

Payment of dividends to stockholders

$48,000

Decrease in accounts payable

$38,000

Decrease in accounts receivable

$42,000

Increase in inventories

$12,000

Increase in salaries payable

$36,000

Net income for 2012

$84,000

Payment for purchase of land and buildings

$120,000

Payment for long-term notes payable (principal amount: 40,000; interest payment: 4,000)                   

$44,000

Issuance of ten-year bonds payable at par value

$40,000

Depreciation expense

$20,000

Proceeds from sale of patents

$54,000

Purchase equipment by issuing long-term notes
$36,000
Cash (at the beginning of 2012)

$300,000

Required: Prepare the statement of cash flows for Biden Company for 2012 using the indirect method.

Reference no: EM131840153

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