Fully depreciated equipment costing $60,000 was scrapscrapped, no salvage, and new equipment was purchased for $183200

2. Bonds payable for $100,000 were retired by payment at their face amount

3. 5,000 shares of common stock were issued at $13 for cash

4. Cash dividends declared and paid $25,000

5. Prepare a statement of cash flow using the Indirect method of reporting cash flow from operating activities.

Stmt of Cash Flow Direct Method The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: Year Year 1 S 53,000 50,000 48,000 100,000 70,000 450,000 142000 76000) $542,000 Cash Accounts receivable (net) 37,000 108,500 573,200 $629 700 S 43,800 100,000 285,000 55,000 162200SS 200 $629 700 542000 S 62,500 Accounts payable Bonds payable, due Year 2 Common stock, $10 par Paidin capital in excess of parcommon stock Retained eanings 325,000 80,000 The income statement for the current year is as follows $625,700 340.000 $285,700 Sales Cost of merchandise sold Gross profit Operating Depreciation expense 26,000 Other operating expenses 68000-94000 $191,700 Income from operations Other income: Gain on sale of investment 4,000 Other expense: Interest expense 2.000 Income before income tax Income tax Net income S189,700 129.000