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Condensed comparative balance sheets of Garrett Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $78,000 $90,000 78,000
Condensed comparative balance sheets of Garrett Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $78,000 $90,000 78,000 85,000 Accounts receivable (net) Inventories 106,500 410,000 Equipment Accumulated depreciation 90,000 370,000 (158,000) $465,000 (150,000) $534,500 Total assets $53,500 $55,000 Accounts payable (merchandise creditors) Cash dividends payable Common stock, $10 par Pald-in capital in excess of par Retained earnings Total liabilities and stockholders' equity 5,000 200,000 62,000 214,000 $534,500 4,000 170,000 60,000 176,000 $465,000 In addition, assume that equipment costing $125,000 was purchased for cash, and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000. 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
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