Question
Acme Companys comparative balance sheets and income statement are presented below, along with additional information. Balance sheet at December 31 2015 2014 Cash $10,250 $
Acme Companys comparative balance sheets and income statement are presented below, along with additional information.
Balance sheet at December 31 2015 2014
Cash $10,250 $ 9,000
AR 1,500 1,800
Prepaid expenses 900 1,000
Equipment 2,000 1,000
AD, equipment ( 400) ( 200)
$ 14,250 $12,600
AP $ 900 $ 1,300
Contributed capital 5,000 3,500
RE 8,350 7,800 $ 14,250 $12,600
Income statement for 2015
Service revenue $ 45,000
Depreciation expense 200
Wages expense 29,000
Other expenses 15,000
Net income $ 800
Additional information:
Prepaid expenses relate to rent paid in advance.
Other expenses were paid in cash.
Purchased equipment for $1,000 at the end of 2015 to be used starting in 2016.
An owner contributed capital by paying $1,500 cash in exchange for the companys stock.
Required:
Prepare, in good form, the statement of cash flows for the year ended December 31, 2015, using the indirect method.
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