E12-23 (Algo) (Supplement 12B) Preparing a Statement of Cash Flows, Indirect Method: T-Account Approach [LO 12-S2] Golf Goods Incorporated is a regional and online golf equipment retailer. The company reported the following for the current year: Purchased a long-term investment for cash, $11,000. Paid cash dividend, $13,600. Sold equipment for $5,200 cash (cost, $19,400; accumulated depreciation, $14,200). Issued shares of no-par stock, 420 shares at $10 cash per share. Net income was $19,400. Depreciation expense was $2,200. Its comparative balance sheet is presented below. Ending Balances Beginning Balances Cash Accounts receivable Inventory Investments Equipment Accumulated Depreciation-Equipment Total Accounts payable Salaries and wages payable Income taxes payable Notes payable (long-term) $ 22,300 21,200 75,800 11,000 94,300 (19,200) $ 205,400 $ 18,400 2,400 6,300 50,000 $ 26,200 21,200 67,200 0 113,700 (31,200) $ 197,100 $ 20,600 4,300 3,900 50,000 Common stock Retained earnings Total Required: 100,000 104,200 24,100 18,300 $ 205,400 $ 197,100 1. Complete the T-account worksheet to be used to prepare the statement of cash flows for the current year. 2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in proper format. Cash T Account Other T Accounts Stmt of Cash Flows Complete the T-account worksheet to be used to prepare the statement of cash flows for the current year. Operating Debit Cash Credit Net Cash Flow Provided by Operating Activities Net Cash Flow Used by Operating Activities Investing Net Cash Flow Provided by Investing Activities Net Cash Flow Used by Investing Activities Financing Net Cash Flow Provided by Financing Activities Net Increase in Cash and Cash Equivalents Beginning balance Ending balance Net Cash Flow Used by Financing Activities Net Decrease in Cash and Cash Equivalents