Comparative balance sheets for International Company are presented below.

INTERNATIONAL COMPANY

Comparative Balance Sheets

December 31

2015

2014

Assets

Cash

$73,000

$22,000

Accounts receivable

85,000

76,000

Inventory

180,000

189,000

Equipment

250,000

200,000

Accumulated depreciation - equipment

(66,000)

(42,000)

Land

75,000

100,000

Total

$597,000

$545,000

Liabilities and Stockholders' Equity

Accounts payable

$34,000

$47,000

Notes payable

150,000

200,000

Common Stock (no par value)

214,000

164,000

Retained earnings

199,000

134,000

Total

$597,000

$545,000

Additional information:

1

Net income for 2015 was $135,000.

2

Cash dividends were declared and paid. Use RE Analysis to infer dividends paid.

3

Equipment was purchased. There was no equipment sold.

4

Land was sold at its historical cost - there was no gain or loss on the sale.

No land was purchased.

5

The long-term Notes payable was paid down.

No other loans were received or paid.

6

Common stock was issued. No treasury stock was purchased.

7

Depreciation expense was $24,000.

Instructions:

Prepare a statement of cash flows for 2015 using the indirect method

	Retained Earnings
	DR		CR
					Beg Bal
					End Bal

		Dec 31, 2015
	Cash flows from operating activities:
	Adjustments to reconcile net income to cash flow from operating activities:
	Changes in assets and liabilities:
	Net cash (used) provided from operating
	Cash flows from investing activities:
	Net cash (used) provided from investing
	Cash flows from financing activities:
	Net cash (used) provided from financing
	Net decrease in cash and cash equivalents
	Cash at the beginning of the period
	Cash at the end of the period
	Refer to Notes to Financial Statements