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Dive In Company was started several years ago by two diving instructors. The companys comparative balance sheets and income statement are presented below. Current Year
Dive In Company was started several years ago by two diving instructors. The companys comparative balance sheets and income statement are presented below.
Current Year | Previous Year | ||||||
Balance Sheet at December 31 | |||||||
Cash | $ | 4,460 | $ | 5,305 | |||
Accounts Receivable | 1,900 | 950 | |||||
Prepaid Rent | 190 | 95 | |||||
Total Assets | $ | 6,550 | $ | 6,350 | |||
Salaries and Wages Payable | $ | 800 | $ | 2,000 | |||
Common Stock | 2,100 | 1,450 | |||||
Retained Earnings | 3,650 | 2,900 | |||||
Total Liabilities and Stockholders Equity | $ | 6,550 | $ | 6,350 | |||
Income Statement | |||||||
Service Revenue | $ | 43,850 | |||||
Salaries and Wages Expense | 39,000 | ||||||
Rent and Office Expenses | 4,100 | ||||||
Net Income | $ | 750 | |||||
Additional Data:
Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.
An owner contributed capital by paying $650 cash in exchange for the companys stock.
Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
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