Question
26-2 The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.: CELLULAR TELEPHONE SALES, INC. Comparative Balance Sheets December 31, 2019
26-2
The following comparative balance sheets and other data are for Cellular Telephone Sales, Inc.:
CELLULAR TELEPHONE SALES, INC.
Comparative Balance Sheets
December 31, 2019 and 2018
2019 2018
Assets
Cash $152,210 $102,000
Accounts receivable, net 52,150 48,500
Merchandise inventory 60,000 70,000
Supplies on hand 3,500 5,100
Prepaid expenses 2,800 2,400
Land 360,000 285,000
Equipment 540,000 600,000
Accumulated depreciationequipment (150,000) (135,000)
Total assets $1,020,660 $978,000
Liabilities and Stockholders' Equity
Accounts payable $90,660 $152,600
Salaries payable 8,000 4,000
Accrued liabilities payable 4,000 16,500
Long-term note payable 300,000 300,000
Common stock ($5 par) 370,000 330,000
Paid-in capital in excess of par 65,000 -0-
Retained earnings 183,000 174,900
Total liabilities and stockholders' equity $1,020,660 $978,000
1. Land was bought for $75,000 cash. The company intends to build a building on the land. Currently, the company leases a building for its operations.
2. Equipment costing $100,000 with accumulated depreciation of $60,000 was sold for $47,000 (a gain of $7,000), and equipment costing $40,000 was purchased for cash.
3. Depreciation expense for the year was $75,000.
4. Common stock was issued for $105,000 cash.
5. Dividends declared and paid in 2019 totaled $65,900.
6. Net income was $74,000.
7. The company paid interest of $6,000 and income taxes of $34,000.
I need help making a statement of cash flows under the indirect method. Also any necessary supplemental schedule(s).
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