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Condensed comparative balance sheets of Denise Company at December 31, Years 1 and 2, are as follows: Cash Accounts receivable (net) Inventories Plant Assets
Condensed comparative balance sheets of Denise Company at December 31, Years 1 and 2, are as follows: Cash Accounts receivable (net) Inventories Plant Assets Accumulated Depreciation Total Assets Year 2 Year 1 $ 29,000 $ 35,000 21,000 18,000 72,000 83,000 232,000 200,000 56,000 40,000 $298,000 $296,000 Accounts payable (merchandise creditors) $ 19,000 $ 27,000 Common stock, $10 par 200,000 200,000 Paid-in capital in excess of par 50,000 50,000 Retained earnings 29.000 19.000 Total liabilities and stockholders' equity $298,000 $296,000 In addition, assume that plant assets costing $62,000 was purchased for cash, and plant assets that cost $30,000 with accumulated depreciation of $10,000 was sold for $24,000. The only entries in the retained earnings account were for net income of $22,000 and cash dividends declared and paid of $12,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method.
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