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Balance Sheet at December 31 Cash Accounts Receivable $ 35,200 36,000 Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes
Balance Sheet at December 31 Cash Accounts Receivable $ 35,200 36,000 Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $23,500. b. Paid $6,500 on the long-term notes payable. c. Issued new shares of stock for $18,500 cash. d. No dividends were declared or paid. Current Year 42,000 128,500 (31,000) $ 210,700 $ 37,000 Previous Year $ 30,250 28,500 38,500 105,000 (25,500) $ 176,750 $ 27,500 1,400 1,650 42,500 49,000 91,600 73,100 38,200 25,500 $ 210,700 $ 176,750 $ 125,000 72,500 39,800 $ 12,700 e. Other expenses included depreciation, $5,500; salaries and wages, $20,500; taxes, $6,500; utilities, $7,300. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
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