Question
A comparative balance sheet for Alpha Company appears below: Alpha COMPANY Comparative Balance Sheet Dec. 31, 2015 Dec. 31, 2014 Assets Cash $ 23,000 $10,000
A comparative balance sheet for Alpha Company appears below: Alpha COMPANY Comparative Balance Sheet Dec. 31, 2015 Dec. 31, 2014 Assets Cash $ 23,000 $10,000 Accounts receivable 18,000 14,000 Inventory 27,000 18,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 18,000 Equipment 60,000 32,000 Accumulated depreciationequipment (18,000) (14,000) Total assets $116,000 $87,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 37,000 47,000 Common stock 40,000 23,000 Retained earnings 22,000 10,000 Total liabilities and stockholders' equity $116,000 $87,000 Additional information: 1. Net income for the year ending December 31, 2015 was $24,000. 2. Cash dividends of $12,000 were declared and paid during the year. 3. Long-term investments that had a cost of $18,000 were sold for $16,000. 4. Sales for 2015 were $150,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2015, using the indirect method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started