Prepare statement of cash flows—indirect method (Learning Objective 3)

20–25 min.

Loomis Corporation accountants assembled the following data for the year ended December 31, 2014:

Current Assets:

Cash and Cash Equivalents .................................................................

Accounts Receivable ...........................................................................

Inventory.............................................................................................

Current Liabilities:

Accounts Payable................................................................................

Income Tax Payable ............................................................................

$21,200 63,700 81,600

$55,100 6,300

$83,600 71,500 77,400

$57,300 4,700 Loomis Corporation December 31 2014 2013

$ 58,700 18,900 30,000 8,000 16,500 20,600 35,000 115,000 58,000 63,500 Transaction Data for 2014:

Net Income .........................................................................................................

Purchase of treasury stock .................................................................................

Issuance of common stock for cash ...................................................................

Loss on sale of equipment ..................................................................................

Payment of cash dividends .................................................................................

Depreciation Expense..........................................................................................

Issuance of long-term note payable in exchange for cash ..................................

Purchase of building for cash .............................................................................

Retirement of bonds payable by issuing common stock.....................................

Sale of equipment for cash .................................................................................

Requirement 1. Prepare Loomis Corporation’s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule.

AppendixLO1