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Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 66,750 18,650 25,650 213,350
Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 66,750 18,650 25,650 213,350 (62,500) $261,900 $ 12,700 5,000 63,000 103,300 77,900 $261,900 $ 65, 800 25, 650 20, 100 152,000 (47,650) $215,900 $ 22,900 5,300 75,900 67,400 44,400 $215,900 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $210,000 107,000 14,850 44,500 $ 43,650 Additional Data: a. Bought equipment for cash, $61,350. b. Paid $12,900 on the long-term note payable. C. Issued new shares of stock for $35,900 cash. d. Dividends of $10,150 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.)
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