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

20–25 min.

The comparative balance sheets for Concorde Company appear below. Prepare a statement of cash flows for the year ending December 31, 2014, using the indirect method.

CONCORDE COMPANY Comparative Balance Sheet Cash Accounts Receivable Inventory Office Supplies Stock Investments Equipment Accumulated Depreciation—Equipment Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities and Stockholders’ Equity

$ 38,000 18,000 25,000 7,000

-0-

60,000

(18,000)

$130,000

$ 25,000 37,000 40,000 28,000

$130,000 Dec 31 2014 Dec 31 2013 ASSETS Liabilities and Stockholders’ Equity

$13,000 14,000 15,000 9,000 18,000 30,000

(14,000)

$85,000

$ 7,000 45,000 23,000 10,000

$85,000 Additional data:

a. Net income for the year ending December 31, 2014, was $30,000.

b. Cash dividends of $12,000 were declared and paid during the year.

c. Stock investments that had a book value of $18,000 were sold for $13,000.

d. Sales for 2014 are $130,000.

AppendixLO1