Problem 12-9A

Condensed financial data of Marigold Corp. follow.

Prepare a statement of cash flows using the indirect method.

Problem 12-9A Condensed financial data of Marigold Corp. follow. Marigold Corp. Comparative Balance Sheets December 31 Assets 2019 Cash $112,900 Accounts receivable 92,100 Inventory 112,500 Prepaid expenses 29,200 Investments 140,500 Equipment 264,100 Accumulated depreciation-equipment (46,900) $704,400 2018 $47,100 32,000 102,200 25,400 115,000 242,000 (51,800) $511,900 Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,000 16,000 113,300 220,600 243,500 $704,400 $67,700 17,300 149,400 176,000 101,500 $511,900 $391,000 Marigold Corp. Income Statement For the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold $134,400 Operating expenses, excluding depreciation 12,400 Depreciation expense 33,400 Income tax expense 27,600 Interest expense 4,200 Loss on disposal of plant assets 7,500 219,500 $171,500 Net income Additional information: 1. New equipment costing $80,900 was purchased for cash during the year. 2. Old equipment having an original cost of $58,800 was sold for $13,000 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $29,500 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Marigold Corp. Statement of Cash Flows For the Year Ended December 31, 2019 V Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Used by Operating Activities Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Payable Decrease in Accrued Expenses Payable Increase in Prepaid Expenses Increase in Inventory Increase in Accounts Receivable Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds Payment of Cash Dividends Net Cash Used by Financing Activities v Net Decrease in Cash Cash at Beginning of Period Cash at End of Period Click if you would like to Show Work for this question: Open Show Work