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Condensed comparative balance sheets of Breach Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $170,000 $74,000
Condensed comparative balance sheets of Breach Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $170,000 $74,000 Accounts receivable (net) 78,000 85,000 Inventories 106,500 90,000 Equipment 395,000 370,000 Accumulated depreciation (195,000) (158,000) Total assets $554,500 $461,000 Accounts payable (merchandise creditors) $51,000 $50,000 Taxes payable 2,500 5,000 Common stock, $10 par 262,000 230,000 Retained earnings 239,000 176,000 Total liabilities and stockholders' equity $554,500 $461,000 In addition, assume: Equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach Company Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach Company Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: Cash balance, January 1, Year 2 Cash balance December 31, Year 2 000 0000 0
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