Question
InnovationInnovation Corporation is preparing its statement of cash flows for the past year. The company has gathered the following information about the past year just
InnovationInnovation
Corporation is preparing its statement of cash flows for the past year. The company has gathered the following information about the past year just ended on December 31.
| Retire bond payable (long-term). . . . . . . | $10,000 |
| Decrease in accounts receivable. . . . . . . . . . . | $11,000 |
| Paid dividends in cash. . . . . . . . . . . . . | $28,000 | Increase in salaries payable. . . . . . . . . . . . . . . . | $9,000 | |
| Decrease in inventory. . . . . . . . . . . . . . | $6,000 |
| Depreciation expense. . . . . . . . . . . . . . . . . . . . | $17,000 |
| Decrease in accounts payable. . . . . . . . | $7,000 |
| Increase in prepaid insurance. . . . . . . . . . . . . . | $600 |
| Sold land (investment). . . . . . . . . . . . . | $23,000 |
| Decrease in other short-term liabilities. . . . . . . . | $3,000 |
| Increase in interest payable. . . . . . . . . | $400 |
| Increase in taxes payable. . . . . . . . . . . . . . . . . | $4,000 |
| Cash balance, beginning of year. . . . . . | $89,000 | Purchase of new computer system with cash. . . . | $18,000 | |
| Net income. . . . . . . . . . . . . . . . . . . . . | $85,000 |
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Requirement
Prepare a statement of cash flows for the past year using the indirect method.
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