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 Balrd Company follow: Balance sheets As of December 31 Year 2 Year 1 Assets Cash $ 24,412 $ 2,714 Accounts receivable 1,868 1,121 Inventory 6,350 5,953 Equipment 21,408 42,900 Accumulated depreciation equipment (10,933) (17,792) Land 17,380 9,170 Total assets $ 60,485 $ 44,074 Liabilities and equity Accounts payable (Inventory) $ 2.763 $ 4,464 Long-ter debt 2,665 6,092 Common stock 23,900 11,500 Retained earnings 31,157 22.018 Total liabilities and equity $ 60,485 $ 44,074 Income Statement l'or the Year Ended December 31. Year 2 Sales revenue $ 35,280 Cost of goods sold (13,984) Gross margin 21,296 Depreciation expense (3,477) Operating income 17,819 Cain on sale of equipment 550 To la 1901 Income statement For the Year Ended December 31, Year 2 Sales revenue 35,200 Cost of goods sold (13,984) Groce margin 21,296 Depreciation expense 23.4271 Operating income 17,819 Cain on sale of equipment 550 Loss on disposal of land Net incon $18, 279 (20) Additional Data 1. During Year 2, the company sold equipment for $18,714; it had originally cost $28,500. Accumulated depreciation on this equipment was $10,336 at the time of the sale. Also, the company purchased equipment for $7,000 cash. 2. The company sold land that had cost $4190. This land was sold for $4,100, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $12,400 at the time of exchange. 3. Paid dividends of $9,140 Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) BAIRD COMPANY Statement of Canh Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: BARD COMPANY taiment of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Less: increase/Decrease in current assets and current lalities Plus: Noncash charges Cash flows from investing activities Cash flows from financing activities Cash flows from investing activities Cash flows from financing activities Ending cash balance Schedule of noncash investing and financing activities