Statement of Cash Flows $($Indirect Method$)$

The Dairy Company's income statement and comparative balance sheets as of December $31$ of the current year and the previous year follow:

DAIRY COMPANY

Income Statement

For the Year Ended December $31$

Sales Revenue $$770,000$

Cost of Goods Sold $$484,000$

Wages and Other Operating Expenses $104,500$

Depreciation Expense $24,200$

Goodwill Amortization Expense $7,700$

Interest Expense $11,000$

Income Tax Expense $39,600$

Loss on Bond Retirement $5,500676,500$

Net Income $$93,500$

DAIRY COMPANY

Balance Sheets

Dec. $31,$ Current Year Dec. $31,$ Previous Year

Assets

Cash $$29,700$ $$19,800$

Accounts Receivable $58,30052,800$

Inventory $113,300119,900$

Prepaid Expenses $13,20011,000$

Plant Assets $396,000369,600$

Accumulated Depreciation $(95,700)(92,400)$

Goodwill $47,30055,000$

Total Assets $$562,100$ $$535,700$

Liabilities and Stockholders' Equity

Accounts Payable $$35,200$ $$28,600$

Interest Payable $4,4007,700$

Income Tax Payable $6,6008,800$

Bonds Payable $66,000132,000$

Common Stock $277,200250,800$

Retained Earnings $172,700107,800$

Total Liabilities and Stockholders' Equity $$562,100$ $$535,700$

During the year, the company sold for $$18,700$ cash old equipment that had cost $$39,600$ and had $$20,900$ accumulated depreciation. New equipment worth $$66,000$ was acquired in exchange for $$66,000$ of bonds payable. Bonds payable of $$132,000$ were retired for cash at a loss. A $$28,600$ cash dividend was declared and paid. All stock issuances were for cash.

Required

a$.$ Compute the change in cash that occurred in the current year.

b$.$ Prepare a statement of cash flows using the indirect method.

a$.$ Change in Cash during the current year $Answer

$0$

Answer

b$.$ Use a negative sign with cash outflow answers.

DAIRY COMPANY

Statement of Cash Flows

For Year Ended December $31$

Cash Flow from Operating Activities

Net Income Answer

$0$

Add $($deduct$)$ items to convert net income to cash basis

Depreciation Answer

$0$

Goodwill Amortization Answer

$0$

Loss on Bond Retirement Answer

$0$

Accounts Receivable Answer

Answer

$0$

Inventory Answer

Answer

$0$

Prepaid Expenses Answer

Answer

$0$

Accounts Payable Answer

Answer

$0$

Interest Payable Answer

Answer

$0$

Income Tax Payable Answer

Answer

$0$

Cash Flow Provided by Operating Activities Answer

$0$

Cash Flow from Investing Activities

Sale of Equipment Answer

$0$

Cash Flow from Financing Activities

Retirement of Bonds Payable Answer

$0$

Issuance of Common Stock Answer

$0$

Payment of Dividends Answer

$0$

Cash Used by Financing Activities Answer

$0$

Net Change in Cash Answer

$0$

Cash at Beginning of Year Answer

$0$

Cash at End of Year Answer

$0$

Please answer all parts of the question.