Problem 14-18A (Algo) Using financial statements to prepare a statement of cash flows - indirect method LO 14-1, 14-3 , 14-4 The comparative balance sheets and income statements for Rundle Company follow Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation -equipment Land Total assets Liabilities and equity Accounts payable (Inventory ) Long-term debt stock Retained earnings Total liabilities and equity $24,784 2,318 6,441 17,871 ( 8,237) 17,840 61,017 $ 2,629 1,391 6,038 42,391 ( 18,207) 10,010 $ 44,252 2,707 2,717 22,000 33,593 4,373 6,210 10,000 23,669 44,25261,017 Income Statement For the Year Ended December 31 , Year 2 Sales revenue \$37,950 Cost of goods sold ( 15,042 ) Gross margin 22,908 Depreciation expense ) Operating income 19,218 Gain on sale of equipment 700 Loss on disposal of land (70) Net income $ 19,848 Additional 1. During Year 2the company sold equipment for 18,140 it had originally cost $31,100 . Accumulated depreciation on this equipment was $13,660 at the time of the sale . Also , the company purchased equipment for $ 6,580 cash . The company sold land that had cost $4,170 . This land was sold for $4,100 , resulting in the recognition of a $70 loss Also common stock was issued in exchange for title to land that was valued at 12,000 at the time of exchange3. Paid dividends of $9,924 Required Prepare a statement of cash flows using the indirect method Note : Amounts to be deducted and cash outflows should be indicated by a minus sign

Problem 14-18A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14.4 The comparative balance sheets and income statements for Rundle Company follow: Additionol Dats 1. During Year 2, the company sold equipment for $18,140; it had originally cost $31,100. Accumulated depreciation on this equipment was $13,660 at the time of the sale. Also, the company purchased equipment for $6.580cash 2. The company sold land that had cost $4,170. This land was sold for $4100, resulting in the fecognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $12,000 at the time of exchange: 3. Paid dividends of $9,924 : Required Prepare a statement of cash flows using the indirect method. Note: Amounts to be deducted ond cosh outfiows should be indicated by o minus sign