17-9B

Prepare a statement of cashflows using the indirect method.

P17-9B Condensed financial data of Minnie Hooper Company are shown below MINNIE HOOPER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Investments Plant assets Accumulated depreciation 2012 2011 $102,700 33,400 60,800 37,000 126,900 102,650 79,500107,000 315,000 205,000 (44,500) (40,000) $640,400 S445,050 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $ 57,700 $ 48,280 15,10018,830 145,000 70,000 250,000 200,000 172,600 107,940 $640,400 $445,050 Total MINNIE HOOPER COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenue $297,500 5,000 302,500 Gain on sale of plant assets Less Cost of goods sold Operating expenss, excluding depreciation expense Depreciation expense Income taxes Interest expense $99,460 19,670 30,500 37,270 2,940 189,840 Net income $112,660 Additional information: New plant assets costing $146,000 were purchased for cash during the year 2. 1. Investments wcre sold at cost. 3. Plant assets costing $36,000 were sold for $15,000, resulting in a gain of $5,000 4. A cash dividend of $48,000 was declared and paid during the year Instructions Prepare a statement of cash flows using the indirect method