Refer to the information reported about Wilson Corporation in Problem 12-1B. Required Prepare a complete statement of

Question:

Refer to the information reported about Wilson Corporation in Problem 12-1B.

Required

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.

a. Net income was $116,125.

b. Accounts receivable increased.

c. Merchandise inventory increased.

d. Prepaid expenses decreased.

e. Accounts payable decreased.

f. Depreciation expense was $20,000.

g. Sold equipment costing $46,500, with accumulated depreciation of $29,375, for $11,500 cash. This yielded a loss of $5,625.

h. Purchased equipment costing $97,500 by paying $25,000 cash and (i.) by signing a long-term note payable for the balance.

j. Borrowed $2,000 cash by signing a short-term note payable.

k. Paid $50,750 cash to reduce the long-term notes payable.

l. Issued 2,350 shares of common stock for $20 cash per share.

m. Declared and paid cash dividends of $59,000.

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