Using the information given in Exercise 5-23, prepare a statement of cash flows for 2002 for LaForge Company using the direct method.

Exercise 5-23:

The following are financial statements for LaForge Company.

The following information is also available for 2002:

(a) Plant assets were sold for their book value of \($200\) during the year. The assets had an original cost of \($330\).

(b) Cash dividends totaling \($75\) were paid during the year.

(c) All accounts payable relate to inventory purchases.

(d) All purchases of plant assets were cash transactions.

Prepare a statement of cash flows for 2002 using the indirect method.

Transcribed Image Text:

LaForge Company Comparative Balance Sheet December 31, 2002 and 2001 (Dollars in thousands) Assets Cash Accounts receivable. Inventory Prepaid general expenses Plant assets. Accumulated depreciation-plant assets. Total assets Accounts payable.. Interest payable... Income taxes payable.. Bonds payable. 2002 2001 $ 22 $ 16 200 250 125 95 18 10 1,019 1,000 (527) (597) $ 857 $ 774 Liabilities and Stockholders' Equity $ 75 $ 50 10 8 90 107 117 77 338 300 227 232 $ 857 $ 774 Common stock Retained earnings. Total liabilities and stockholders' equity