Assignment Prompt

The Airport Shuttle Services Inn provides the following balance sheet, income statement and other information. You may download this data as an Excel file (click to download).

Use this information to complete a Statement of Cash Flows using the Indirect Method.

Airport Shuttle Services: Balance Sheets 12/31

	20X1	20X2
ASSETS
Cash	$ 34,000	$ 56,000
Accounts Receivable	30,000	20,000
Prepaid Expenses	0	4,000
Land	0	130,000
Building	0	160,000
Equipment	10,000	27,000
Accumulated Depreciation	0	(14,000)
Total Assets	$ 74,000	$ 383,000
LIABILITIES AND EQUITIES
Accounts Payable	$ 4,000	$ 59,000
Bonds Payable	0	130,000
Common Stock	50,000	50,000
Retained Earnings	20,000	144,000
Total Liabilities and Equities	$ 74,000	$ 383,000

Airport Shuttle Services: Income Statement 12/31

Revenues		$ 507,000
Operating Expenses	$ 261,000
Depreciation Expenses	15,000
Loss on Sale of Equipment	3,000
Total Expenses		279,000
Operating Income		228,000
Income Taxes		89,000
Net Income		$ 139,000

Airport Shuttle Services: Additional Information

1. The company declared and paid a $ 15,000 cash dividend.
2. The company obtained land through the issuance of $ 130,000 in long-term bonds.
3. A building costing $ 160,000 was purchased with cash.
4. Equipment costing $ 25,000 was purchased with cash.
5. The company sold equipment with a book value of $ 7,000 (cost was $ 8,000 with accumulated depreciation of $ 1,000) for cash of $ 4,000.