Problem # $2.$ Statement of Cash flows $-$ indirect method

Assets

Der, $3120$ Y$6$

Dec, $31,20Y5$

Liabilities & Stackhalders equity

Dec, $3120Y6$

Dec, $31,20Y5$

Additional data obtained from an examination of the accounts in the ledger for $20Y6$ are as follows:

The investments were sold for $$175,000$ Cash

b$.$ Equipment and land were acquired for cash.

c$.$ There were no disposals of equipment during the year.

d$.$ The common stock was issued for cash

e$.$ There was a $$500,000$ credit to Retained earnings for net income

f$.$ There was $$90,000$ debit to Retained Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating

activities.