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On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows

image text in transcribedOn the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Current year Prior year Assets Cash $65,000 $54,000 Accounts receivable (net) 78,000 85,000 Inventories 106,500 90,000 Land 20,000 Equipment 495,000 370,000 Accumulated depreciation (215,000) (158,000) Total assets $529,500 $461,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $53,500 $55,000 Common stock, $10 par 200,000 170,000 Paid-in capital in excess of parcommon stock 62,000 60,000 Retained earnings 214,000 176,000 Total liabilities and stockholders' equity $529,500 $461,000 Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

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On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows for the current year using the indirect method. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Current year Prior year Assets Cash $54,000 Accounts receivable (net) $65,000 78,000 106,500 Inventories Land 85,000 90,000 20,000 370,000 (158,000) $461,000 Equipment Accumulated depreciation 495,000 (215,000) $529,500 Total assets $53,500 $55,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 200,000 170,000 60,000 62,000 214,000 $529,500 176,000 $461,000 Total liabilities and stockholders' equity Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow provided by financing activities Cash at the beginning of the year Cash at the end of the year

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