The financial statements of Bruce Willis Company appear below.

Additional information: 1. Plant assets were sold at a sales price of \($37,500\). 2. Additional equipment was purchased at a cost of \($40,000\). 3. Dividends of \($10,500\) were paid. 4. All sales and purchases were on account. 5. Bonds were redeemed at face value. 6. Additional shares of stock were issued for cash.

Instructions

Prepare a statement of cash flows for Bruce Willis Company for the year ended December 31, 2002, using the indirect method.

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BRUCE WILLIS COMPANY Comparative Balance Sheets December 31 Assets 2002 2001 Cash $ 23,000 11,000 Accounts receivable 24,000 33,000 Merchandise inventory 20,000 29,000 Prepaid expenses 15,000 13,000 Land 40,000 40,000 Property, plant, and equipment 210,000 225,000 Less: Accumulated depreciation (55,000) (67,500) Total $277,000 $283,500 Liabilities and Stockholders' Equity Accounts payable 9,000 $ 18,500 Accrued expenses payable 9,500 7,500 Interest payable 1,000 1,500 Income taxes payable 3,000 2,000 Bonds payable Common stock Retained earnings Total 50,000 80,000 125,000 105,000 79,500 69,000 $277,000 $283,500