Question
The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2015 are presented below. Kinder Company Balance Sheet
The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2015 are presented below.
Kinder Company
Balance Sheet
December 31
2015 2014
Cash $ 35,900 $ 10,200
Accounts receivable (net) 38,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 236,500 150,000
Accumulated depreciation (37,700) (25,000)
$308,000 $212,500
Accounts payable $ 17,000 $ 26,500
Accrued liabilities 21,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 70,000 29,000
$308,000 $212,500
Additional data:
1. Net income for the year 2015, $71,000.
2. Depreciation on plant assets for the year, $12,700.
3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary).
4. Paid dividends of $30,000.
5. Purchased machinery costing $21,500, paid cash.
6. Purchased machinery and gave a $60,000 long-term note payable.
7. Paid a $40,000 long-term note payable by issuing common stock.
Instructions
Using the format provided on the next page, prepare a statement of cash flows (using the indirect method) for 2015 for Kinder Company.
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