Preparing the Statement of Cash Flows: Indirect Method

Keeper Corporations income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow.

Keeper Corporation Income Statement For the Year Ended June 30, 2014
Sales		$ 234,000
Cost of goods sold		156,000
Gross margin		$ 78,000
Operating expenses		45,000
Operating income		$ 33,000
Interest expense		2,800
Income before income taxes		$ 30,200
Income taxes expense		12,300
Net income		$ 17,900

Keeper Corporation Comparative Balance Sheets June 30, 2014 and 2013
		2014		2013
Assets
Cash		$ 69,900		$ 12,500
Accounts receivable (net)		21,000		26,000
Inventory		43,400		48,400
Prepaid expenses		3,200		2,600
Furniture		55,000		60,000
Accumulated depreciationfurniture		(9,000)		(5,000)
Total asset		$183,500		$144,500
Liabilities and Stockholders Equity
Accounts payable		$ 13,000		$ 14,000
Income taxes payable		1,200		1,800
Notes payable (long-term)		37,000		35,000
Common stock, $10 par value		115,000		90,000
Retained earnings		17,300		3,700
Total liabilities and stockholders equity		$183,500		$144,500

Keeper issued a $22,000 note payable for purchase of furniture; sold at carrying value furniture that cost $27,000 with accumulated depreciation of $15,300; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300.

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Prepare Keepers statement of cash flows for the year 2014 using the indirect method. Use the minus sign to indicate cash outflows or a decrease in cash.

Keeper Corporation
Statement of Cash Flows
For the Year Ended June 30, 2014
Cash flows from operating activities
				$
Adjustments to reconcile net income to net cash flows from operating activities
		$
Changes in current assets and current liabilities
Net cash flows from operating activities				$
Cash flows from investing activities
Cash flows from financing activities
		$
Net cash flows from financing activities
				$
Cash at beginning of year
Cash at end of year				$
Schedule of Noncash Investing and Financing Transactions
				$