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7. The comparative balance sheets of Lesley Leary Design Studio, In

The comparative balance sheets of Lesley Leary Design Studio, In

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The comparative balance sheets of Lesley Leary Design Studio, Inc., at June 30, 2012 and 2011, and transaction data for fiscal 2012, are as follows:

Transaction data for the year ended June 30, 2012, follows: a. Net income, $60,500 b. Depreciation expense on equipment, $13,900 c. Purchased long-term investment, $4,800 d. Sold land for $50,400, including $6,400 loss e. Acquired equipment by issuing long-term note payable, $15,000 f. Paid long-term note payable, $60,700 g. Received cash for issuance of common stock, $8,200 h. Paid cash dividends, $38,100 i. Paid short-term note payable by issuing common stock, $5,400 Requirements 1. Prepare the statement of cash flows of Lesley Leary Design Studio, Inc., for the year ended June 30, 2012, using the indirect method to report operating activities. Also prepare the accompanying schedule of non-cash investing and financing activities. All current accounts except Notes payable, short-term, result from operating transactions. 2. Prepare a supplementary schedule showing cash flows from operations by the direct method. The accounting records provide the following: collections from customers, $232,600; interest received, $1,600; payments to suppliers, $130,300; payments to employees, $29,500; payments for income tax, $13,500; and payment of interest,$5,800.