The following information was taken from the records ofAlderman Produce Company for the year ended June 30, 2002.

Instructions:
1. From the information given, prepare a statement of cash flows using the indirect method.
2. Briefly explain what an interested party would learn from studying the cash flow statement for Alderman Produce Company.

Transcribed Image Text:

Borrowed on long-term notes.. Issued capital stock. Purchased equipment. Net income... Purchased treasury stock. $20,000 50,000 27,000 47,000 1,500 Paid dividends 30,000 Depreciation expense. 12,000 Retired bonds payable. 70,000 Goodwill amortization. 2,000 Sold long-term investment (at cost) 5,000 Increase in cash. 11,000 Decrease in inventories. 8,000 Increase in accounts receivable 8,500 Increase in accounts payable.. Cash balance, July 1, 2001. 4,000 20,000