Q3. Indirect SCF

The following information is taken from ABC Corporation's financial statements. Prepare the Operating Activities section of the Statement of Cash Flows for ABC Corporation using the indirect method for the year 2011. (Note: You may not need to use all information provided here as some information is for other activities that we will go over in the next class.)

December 31 2011

2010 $ 27,000 76,900 175,000 6,800 Land 90,00060,000 Buildings 287,000244,000

Cash $90,000 Accounts receivable, net 87,500 Inventory 155,000 Prepaid expenses 7,500

Accumulated depreciation (32,000) Patents 20,000 $705,000

(13,000) 35,000 $611,700

$ 84,000 63,000 60,000 100,000 312,700

(8,000) $611,700

Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Treasury stock

Net income Net sales COGS Depreciation expense Amortization of patents Cash dividends declared and paid Gain or loss on sale of patents

$ 90,000 54,000 125,000 100,000 351,000

(15,000) $705,000

For 2011 Year $58,300 218,000 108,000

19,000 5,000 20,000 none

Additional information:

There were no buildings or land sold in 2011.

Some patents are sold in 2011 with no gain or loss. Use a T account to figure out the

amounts of patents sold.

Treasury stock is a contra-shareholders equity account. That is why it is presented in

parenthesis.