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 Jordan Company follow: Balance Sheets An of December 31 Year 2 Year 1 Assets Cash $ 26,366 $ 2,662 Accounts receivable 2,268 1,361 Inventory 6,485 6,081 Equipment 18,622 41, 142 Accumulated depreciation equipment (7.049) (15,055) Land 20334 11,304 Total assets $67,027 $ 47,495 Llabilities and equity Accounts payable (inventory) $ 2.534 $ 4,094 Long-term debt 2,654 6,067 Common stock 24,000 10,000 Retained earnings 37.039 22,334 Total liabilities and equity 567,027 5 47,495 Income Statement For the Year Ended December 31, Year 2 Sales revenue $39.550 Cost of goods sold (15,676) Gross margin 23,674 Depreciation expense (2.343) Operating income 20,531 Gain on sale of equipment 550 Lons on disposal of land (70) Net Income $ 21,011 Additional Data 1. During Year 2, the company sold equipment for $18,601; it had originally cost $29,400. Accumulated depreciation on this equipment was $11,349 at the time of the sale. Also, the company purchased equipment for $6,880 cash. 2. The company sold land that had cost $4.970. This land was sold for $4,900, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $14,000 at the time of exchange. 3. Pald dividends of $10.506. 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.) JORDAN COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flown from operating activities Los Incro/Decrease in current assets and current Habilities Plus. Noncash charges Cash flows from investing activities Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities