Reference no: EM132526924

Question 1: What goes in an indirect method operational cash flow statement how do you differentiate between to years such as 2013 and 2014

Cash                                                   $ 35,900                          $ 10,200

Accounts receivable (net)                       48,300                              20,300

Inventory                                              35,000                             42,000

Long-term investments                               0                                  15,000

Property, plant & equipment                      236,500                         150,000

Accumulated depreciation                          (37,700)                       (25,000)

                                                             $318,000                      $212,500

Accounts payable                                       $ 19,000                     $ 26,500

Accrued short term liabilities                           19,000                        17,000

Long-term notes payable                                 70,000                      50,000

Common stock                                                130,000                    90,000

Retained earnings                                             80,000                      29,000

                                                                    $318,000                  $212,500

• Net income for the year 2004, $90,000.
• Depreciation on plant assets for the year, $12,700.
• Sold the long-term investments for $33,000 (assume gain or loss is ordinary).
• Paid dividends of $39,000.
• Purchased machinery costing $26,500, paid cash.
• Purchased machinery and gave a $60,000 long-term note payable.
• Paid a $40,000 long-term note payable by issuing common stock.