Problem 13-11A The comparative balance sheets for Rothlisberger Company as of December 31 are presented below ROTHLISBERGER COMPANY Balance Sheets 2015 $70,380 44,530 150,420 2014 $45,080 61,430 142,840 21,010 130,260 200,950 Accounts receivable Prepaid expenses 14,950 105,240 200,950 (59,280) (39,490) 228,180 (45,700) Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 55,720 34,150 $709,670 $683,650 Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock, $1 par Retained earnings $47,850 $39,260 300,440 160,010 201,370183,940 $709,670 $683,650 260,680 199,770 Additional information 1. Operating expenses include depreciation expense of $42,030 and charges from prepaid expenses of $6,060 2. Land was sold for cash at book value 3. Cash dividends of $19,350 were paid. 4. Net income for 2015 was $36,780 5. Equipment was purchased for $94,140 cash. In addition, equipment costing $21,680 with a book value of $10,990 was sold for $5,920 cash. 6. Bonds were converted at face value by issuing 39,760 shares of $1 par value common stock. Prepare a statement of cash flows for the year ended December 31, 2015, 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).) ROTHLISBERGER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities 36780 Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 42030 5070 16900 7580 6060 8590 Depreciation Expense Loss on Disposal of Equipment Increase in Inventory Decrease in Prepaid Expenses Increase in Accounts Payable Net Cash Provided by Operating Activities 107850 Cash Flows from Investing Activities Sale of Land 25020 Purchase of Equipment -94140 Sale of Equipment 5920 Net Cash Provided by Financing Activities Cash Flows from Financing Activities Payment of Cash Dividends Cash Flows from Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Noncash Investing and Financing Activities Conversion of Bonds by Issuance of Common Stock