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11-3A -Cash Flow Statement The financial statements of Vita Cleanse Inc. are presented below: Additional information: 1.) Operating expenses are composed of: Depreciation $238,000; Salaries
11-3A -Cash Flow Statement The financial statements of Vita Cleanse Inc. are presented below: Additional information: 1.) Operating expenses are composed of: Depreciation $238,000; Salaries $588,000; Loss on Sale of Equipment $23,000; other operating expenses $76,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $276,000cash. 4.) Equipment was sold for cash during the year. The original cost of the equipment was $344,000, and the accumulated depreciation was $280,000. 5.) Dividends were declared and paid during the year. Required: Prepare a cash flow statement using the direct method or indirect method or both (depending on what your instructor assigns)
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