Raccoon Collectables provided the following balance sheet and income statement information: Balance Sheet at December 31 :Year
Question:
Raccoon Collectables provided the following balance sheet and income statement information:
Balance Sheet at December 31 :Year 2 Year 1 Cash $ 1,400 $ 7,200 Accounts receivable 13,500 12,000 Inventory 11,800 4,500 Prepaid insurance 1,200 900 Equipment, net 36,500 38,000 Total assets $64,400 $62,600 Accounts payable $ 13,100 $ 12,600 Wages payable 7,400 8,000 Long-term note payable 17,000 26,700 Common stock 16,000 8,000 Retained earnings 10,900 7,300 Total liabilities & shareholders' equity $64,400 $62,600
Income Statement for Year 2: Sales $ 121,800 Cost of goods sold 49,500 Depreciation expense 6,800 Other operating expenses 27,800 Interest expense 2,100 Income taxes expense 8,000 Net income $ 27,600
Using the financial data for Raccoon Collectables, prepare the statement of cash flow using the indirect method for Year 2.