HORNGREN'S Financial & Managerial Accounting

E14-21 Preparing the statement of cash flowsindirect method

Accountants for Carlson, Inc. have assembled the following data for the year ended December 31, 2016:

2016 2015

Current Assets:

Cash $ 89,200 18,000

Accounts Receivable 64,600 68,800 Merchandise Inventory 85,000 77,000

Current Liabilities:

Accounts Payable $ 57,500 $ 55,400 Income Tax Payable 14,700 16,200

Transaction Data for 2016:

Issuance of common stock for cash $38,000

Depreciation expense 21,000

Purchase of equipment with cash 73,000

Acquisition of land by issuing long-term notes payable 122,000

Book value of building sold 55,000

Payment of notes payable $ 51,100

Payment of cash dividends 46,000

Issuance of notes payable to borrow cash 61,000

Gain on sale of building 2,000

Net income 69,500

REQUIREMENTS

Prepare Carlson's statement of cash flows using the indirect method. Include an

accompanying schedule of non-cash investing and financing activities.