prepare a worksheet for a statement of cash flows for 2014 using the indirect method 621060
Comparative balance sheets for International Company are presented below.
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INTERNATIONAL COMPANY Comparative Balance Sheets December 31 |
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|
Assets |
2014 |
2013 |
|
Cash |
$ 73,000 |
$ 22,000 |
|
Accounts receivable |
85,000 |
76,000 |
|
Inventory |
180,000 |
189,000 |
|
Land |
75,000 |
100,000 |
|
Equipment |
250,000 |
200,000 |
|
Accumulated depreciation—equipment |
(66,000) |
(42,000) |
|
Total |
$597,000 |
$545,000 |
|
Liabilities and Stockholders” Equity |
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|
Accounts payable |
$ 34,000 |
$ 47,000 |
|
Bonds payable |
150,000 |
200,000 |
|
Common stock ($1 par) |
214,000 |
164,000 |
|
Retained earnings |
199,000 |
134,000 |
|
Total |
$597,000 |
$545,000 |
Additional information:
- Net income for 2014 was $135,000.
- Cash dividends of $70,000 were declared and paid.
- Bonds payable amounting to $50,000 were redeemed for cash $50,000.
- Common stock was issued for $50,000 cash.
- Depreciation expense was $24,000.
- Sales for the year were $978,000.
Instructions
Prepare a worksheet for a statement of cash flows for 2014 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference each entry.