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Indirect Method - Preparing a Statement of Cash Flows and Comparative Balance Sheets from Financial Data Linda Ray, the president of Company x , requires

Indirect Method-Preparing a Statement of Cash Flows and Comparative Balance Sheets from Financial Data
Linda Ray, the president of Company x, requires a statement of cash flows for its annyal report ending December 31. The following balance sheet data are from Comp
The December 31 year-end Cash balance decreased by $156,250 from $107,500 to $45,000.
The net balance in Accounts Receivable decreased by $62,500 during the year from $150,000 to $125,000. The company had no short-term investments.
Inventory increased $56,250 from $177,500 to $200,000.
Accounts Payable increased $18,750 during the year from $72,500 to $80,000.
Income Tax Payable increased $25,000 during the year from $10,000 to $20,000.
Salaries Payable decreased by $31,250 during the yefar from $22,500 to $10,000. There were no other current liabilities.
5. During December, the company settled a $25,000 note payable (fully liquidating the outstanding balance) by issuing shares of its own common stock with equal valu
6. Cash expenditures during the year were (a) payment of long-term debt, $160,000; (b) purchase of fixed assets, $185,000(ending balance of $397,500); (c) payment of of land as an investment, $62,500.
7. Sale and issuance of Company x common stock for $50,000 cash. The December 31, prior year, balance of Common Stock was $125,000.
8. Issuance of a long-term mortgage note, $75,000 cash.
9. Accumulated Depreciation is $130,000 on December 31 of the current year.
10. Retained Earnings on December 31 of the prior year is $167,500.
11. Sold fixed assets; the following entry was made:
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