Question
how do I prepare the statement of cash flows using the indirect method for this problem (P13-9B in the book)? I wasn't sure if you
how do I prepare the statement of cash flows using the indirect method for this problem (P13-9B in the book)? I wasn't sure if you already had the textbook so I typed the problem out below. Any help on how to do the indirect method for this problem would be greatly appreciated!!!
Minnie Hoover Company Comparative Balance Sheets December 31st
ASSETS | 2014 | 2013 |
Cash | 93600 | 33400 |
Accounts Receivable | 63200 | 37000 |
Inventory | 124500 | 102650 |
Investments | 79500 | 107000 |
Plant Assets | 318000 | 205000 |
Accumulated Depreciation | (44000) | (40000) |
TOTAL. | $634800 | $445050 |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Accounts Payable | 56600 | 48280 |
Accrued Expenses Payable | 15100 | 18830 |
Bonds Payable | 140000 | 70000 |
Common Stock | 250000 | 200000 |
Retained Earnings | 173100 | 107940 |
TOTAL. | $634800 | $445050 |
MINNIE HOOPER COMPANY INCOME STATEMENT FOR THE YEAR ENDING 12-31-2014
Sales Revenue | $297500 | |
LESS: | ||
Cost of Goods Sold | 99460 | |
Operating Expenses, excluding depreciation expense | 19670 | |
Depreciation Expense | 25000 | |
Loss on Disposal of Plant Assets | 5000 | |
Income Taxes | 37270 | |
Interest Expense | 2940 | 189340 |
Net Income | $108160 | |
Additional Information.
1. New plant assets costing $149000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36000 were sold for $10000, resulting in a loss of $5000.
4. A cash dividend of $43000 was declared and paid during the year.
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