Part E: Preparing Statement of Cash Flows

Boscia Corporation's balance sheet appears below:

Comparative Balance Sheet

Ending

Beginning

Balance

Balance

Assets:

Cash and cash equivalents .........................

$ 44

$ 38

Accounts receivable ..................................

82

69

Inventory ...................................................

71

69

Plant and equipment ..................................

537

500

Accumulated depreciation .........................

( 240)

( 201)

Total assets ................................................

$494

$475

Liabilities and stockholders' equity:

Accounts payable ......................................

$ 70

$ 60

Wages payable ...........................................

24

21

Taxes payable ............................................

19

22

Bonds payable ...........................................

226

300

Deferred taxes ............................................

19

18

Common stock ...........................................

22

20

Retained earnings ......................................

114

34

Total liabilities and stockholders' equity ..

$494

$475

The net income for the year was $108. Cash dividends were $28.

Required a statement of cash flows in good form using the indirect method.