Question
Please help.. The following information is available for Flip Corporation for the year ended December 31, 2014: Collection of principal on long-term loan to a
Please help..
The following information is available for Flip Corporation for the year ended December 31, 2014:
Collection of principal on long-term loan to a supplier $15,000
Acquisition of equipment for cash 10,000
Proceeds from the sale of long-term investment at book value 20,000
Issuance of common stock for cash 27,000
Depreciation expense 28,000
Redemption of bonds payable at carrying (book) value 35,000
Payment of cash dividends 15,000
Net income 25,000
Purchase of land by issuing bonds payable 45,000
In addition, the following information is available from the comparative balance sheet for Flip at the end of 2013 and 2014:
2014 2013 Cash $ 66,000 $14,000
Accounts receivable (net) 20,000 16,000
Prepaid insurance 18,000 13,000
Total current assets $104,000 $43,000
Accounts payable $ 30,000 $20,000
Salaries payable 3,000 7,000
Total current liabilities $ 33,000 $27,000
Instructions: Prepare Flip's statement of cash flows for the year ended December 31, 2012 using the indirect method.
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