GL1202 (Algo) - Based on Problem 12-3A LO A1, P2, P3

Ryan Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.

RYAN COMPANY Comparative Balance Sheets December 31
	Current Year	Prior Year
Assets
Cash	$ 73,900	$93,300
Accounts receivable	77,000	59,000
Inventory	279,000	255,000
Prepaid expenses	2,200	2,700
Total current assets	432,100	410,000
Equipment	192,000	132,000
Accumulated depreciationEquipment	(40,000)	(56,000)
Total assets	$ 584,100	$ 486,000
Liabilities and Equity
Accounts payable	55,100	119,000
Short-term notes payable	15,000	9,000
Total current liabilities	70,100	128,000
Long-term notes payable	79,000	59,000
Total liabilities	149,100	187,000
Equity
Common stock, $5 par value	186,500	170,000
Paid-in capital in excess of par, common stock	49,500	0
Retained earnings	199,000	129,000
Total liabilities and equity	584,100	486,000

RYAN COMPANY Income Statement For Current Year Ended December 31
Sales		$ 682,000
Cost of goods sold		309,000
Gross profit		373,000
Operating expenses
Depreciation expense	$ 19,000
Other expenses	156,000	175,000
Other gains (losses)
Loss on sale of equipment		(5,900)
Income before taxes		192,100
Income taxes expense		33,000
Net income		$ 159,100

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $5,900 (details in b).
2. Sold equipment costing $52,000, with accumulated depreciation of $35,000, for $11,100 cash.
3. Purchased equipment costing $112,000 by paying $34,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $58,000 cash to reduce the long-term notes payable.
6. Issued 3,300 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $89,100.

Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3

Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)