Statement of Cash Flows-Indirect Method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 20Y1 Assets Cash $300,600 $337,800 Accounts receivable (net) 704,400 609,600 Inventories 918,600 865,800 Prepaid expenses 18,600 26,400 Land 990,000 1,386,000 1,980,000 990,000 Buildings Accumulated depreciation-buildings (397,200) (366,000) 529,800 Equipment Accumulated depreciation-equipment 660,600 (133,200) (162,000) Total assets $5,042,400 $4,217,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $594,000 Income taxes payable 26,400 $631,200 21,600 Bonds payable 330,000 0 Common stock, $20 par 320,000 180,000 Common stock, $20 par 320,000 180,000 950,000 810,000 Paid-in capital in excess of par-common stock Retained earnings 2,822,000 2,574,600 Total liabilities and stockholders' equity $5,042,400 $4,217,400 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,386,000 990,000 Apr. 20 Realized $456,000 cash from sale 396,000 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2092 Jan. 1 Balance 990,000 Apr. 20Acquired for cash 990,000 1,980,000 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 366,000 Dec. 31 Depreciation for year 31,200 397,200 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 529,800 26 Discarded, no salvage 66,000 463,800 Aug. 11 Purchased for cash 196,800 660,600 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 162,000 66,000 26 Equipment discarded Dec. 31 Depreciation for year 96,000 133,200 37,200 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 330,000 330,000 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 180,000 Dec. 7 Issued 7,000 shares of common 140,000 320,000 140,000 320,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 810,000 140,000 950,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,574,600 Dec. 31 Net income 326,600 2,901,200 31 Cash dividends 79,200 2,822,000 Required: Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Coulson, Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow from operating activities Cash flows from (used for) investing activities: o Net cash flow used for investing activities Cash flows from (used for) financing activities: o Net cash flow from financing activities Cash balance, January 1, 20Y2 Cash balance, December 31, 20Y2
