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a) Prepare a statement of cash flows using the indirect method b) Computer free cash flow Condensed financial athaf Lemere Inc. follow. LEMERE INC. Comparative
a) Prepare a statement of cash flows using the indirect method
b) Computer free cash flow
Condensed financial athaf Lemere Inc. follow. LEMERE INC. Comparative Balance Sheets December 31 Assets 2012 Cash $ 80,800 Accounts receivable 87,800 Inventory 112,500 Prepaid expenses 28,400 Long-term investments 138,000 Plant assets 285,000 Accumulated depreciation (50,000) Total $682,500 2011 $ 48,400 38,000 102,850 26,000 109,000 242,500 (52.000) $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $102,000 16,500 110,000 220,000 234,000 $682,500 $ 67,300 21,000 146,000 175,000 105,450 $514,750 LEMERE INC. Income Statement Data For the Year Ended December 31, 2012 Sales $388,460 Less: Cost of goods sold $135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income taxes 27,280 Interest expense 4,730 Loss on sale of plant assets 7,500 233,880 Net income $154,580 Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $26,030 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method
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