Below are listed the changes in Yoric Company’s balance sheet accounts for the past year:

The following additional information is available about last year’s activities:

1. Net income for the year was $_______?_______.
2. The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and it had $37.000 in accumulated depreciation at the time of sale.
3. Cash dividends of $20,000 were declared and paid during the year.
4. Depreciation charges for the year were $_________?__________.
5. The balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:

6. The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was$ _______?______. 
7. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.

Required:

Using the indirect method, prepare a statement of cash flows for the year.

Transcribed Image Text:

Debits Credits $ 17,000 Cash Accounts receivable 110,000 $ 65,000 Inventory Prepaid expenses 8,000 Long-term loans to subsidiaries 30,000 Long-term investments 80,000 Plant and equipment 220,000 Accumulated depreciation 5,000 Accounts payable 32,000 Accrued liabilities 9,000 Bonds payable 400,000 Deferred income taxes 16,000 Common stock 170,000 Retained earnings 50,000 $606,000 $606,000