Refer to the information for Brierwold Corporation below:

Required:
Prepare a statement of cash flows using the indirect method?

Transcribed Image Text:

Balance sheets for Brierwold Corporation follow: Beginning Balances Ending Balances Assets Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation Land $ 100,000 200,000 400,000 700,000 (200,000) 100,000 $1,300,000 $ 150,000 180,000 410,000 690,000 (245,000) 150,000 Total assets Liabilities and equity Accounts payable Mortgage payable Preferred stock Common stock Paid-in capital in excess of par Retained earnings $ 300,000 $250,000 110,000 100,000 240,000 360,000 300,000 $1,300,000 280,000 420,000 275,000 $1,335,000 Total liabilities and equity Additional transactions were as follows a. Purchased equipment costing $50,000 b. Sold equipment costing $60,000 with a book value of $25,000 for $40,000 c. Retired preferred stock at a cost of $110,000 (the premium is debited to retained d. e. f. earnings) Issued 10,000 shares of common stock (par value, $4) for $10 per shane Reported a loss of $15,000 for the year Purchased land for $50,000