From the following income statement (Figure 21.15), balance sheet (Figure 21.16), and additional data for Danley Company, prepare a statement of cash flows using the indirect method.

Additional Data:

1. All Plant and Equipment was purchased with cash.

2. Sold additional 5,000 shares of stock for cash at par.

3. A $1,100 dividend was declared and paid.

4. Short-term notes used to finance inventory.

In Figure 21.15

DANLEY COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2012

In Figure 21.16

DANLEY COMPANY
BALANCE SHEET
DECEMBER 31,2012

Transcribed Image Text:

Sales Cost of Goods Sold Gross Profit 96 10000 6900000 2710000 rating Expenses Rent Ex 6|0|0|00 1010100 25000 iation Expense Salaries Expense Miscellaneous Ex Total Net Income 23650 S345000 ating Expenses Assets 2012 2011 Current Assets Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent 345000 245000 580000410000 65000 180000 110000 1285000 S 945000 Plant and Equipment Store Equipment Accum. Dep., Store Equipment s 58101010100 5151010100 1060o (400000 Total Plant and Equipment Total Assets 60250oo IS 5695000 Liabilities Current Liabilities: Notes Pavable Short Term Accounts Payable ooo IS 540000 Total Current Liabilities 11 05000 S 1010000 Long-Term Liabilities: Bonds Payable Total Liabilities 2705000 IS 31 10000 Stockholders' Equity Common Stock, $1 par Retained Earnings 2500olbo IS 2000000 820000585000 3320000 IS 258 5000 6025|() )() 50101510100 Total Stockholders' Equity Total Liabilities and Stockholders Equit