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The comparative balance sheet of Waterfall Travel Services is presented below: Waterfall Travel Services Balance Sheets As of December 31 Assets Cash Accounts receivable Inventories
The comparative balance sheet of Waterfall Travel Services is presented below: Waterfall Travel Services Balance Sheets As of December 31 Assets Cash Accounts receivable Inventories Prepaid insurance Land Equipment Accum. Depreciation Total Liabilities and Stockholders' Equity Accounts payable Wages payable Interest payable Income taxes payable Notes payable (long-term) Total liabilities Common Stock Retained Earnings Total stockholders' equity Total liabilities and stockholders' equity 2012 $44,000 77,000 58,000 9,000 106,000 77,000 (20,000) $351,000 | 2011 $15,000 86,000 19,000 11,000 119.000 58,000 (14,000) $294,000 $26,000 30,000 16,000 12,000 94,000 $178,000 136,000 37,000 $173,000 $351,000 $31,000 21,000 14.000 10.000 85,000 $161,000 123,000 10,000 $133,000 $294,000 The following information is also available: 1) Land was sold for $9700 2) Net income was $39,000 3) There were no disposals of equipment during the year Prepare the operating activities section of the statement of cash flows for 2012 using the INDIRECT METHOD Waterfall Travel Services, Inc. Statement of Cash Flows -- Operating Activities For year ended December 31, 2012 Cash flows from operating activities: Net Income Adjustments to reconcile net income to cash basis Net cash flow from operations
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