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

20–25 min.

Carlson 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 ............................................................................

$27,000 64,800 83,500

$55,600 16,500

$82,600 69,700 80,300

$57,200 14,500 Carlson Corporation December 31 2014 2013

$ 57,300 14,200 36,900 10,500 18,300 21,900 34,600 124,000 66,000 53,000 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 Carlson 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