Statement of cash flows using indirect method

Reference no: EM1317324

The comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007 is as follows:

	June 30, 2008	June 30, 2007
Assets
Cash	$34,700	$23,500
Accounts receivable (net)	101,600	92,300
Inventories	146,300	142,100
Investments	0	50,000
Land	145,000	0
Equipment	215,000	175,000
Accumulator depreciation	(48,600)	(41,300)
	$594,000	$442,100
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$100,900	$95,200
Accrued expenses (operating expenses)	15,000	13,200
Dividends payable	12,500	10,000
Common stock, $1 par	56,000	50,000
Paid-in capital in excess of par-common stock	220,000	100,000
Retained earnings	189,600	173,700
	$594,000	$442,100

The following additional information was taken from the records of Oak and The Flooring Co.
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $45,000 cash.
d. The common stock was issued for cash.
e. There was a $65,900 credit to Retailed Earnings for net income.
f. There was a $50,000 debit to Retailed Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Reference no: EM1317324

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