Question
The following information is available for Ringo Corporation for the year ended December 31, 2014: Collection of principal on long-term loan to a supplier $15,000
The following information is available for Ringo Corporation for the year ended December 31, 2014:
| Collection of principal on long-term loan to a supplier | $15,000 |
| Acquisition of equipment for cash | 10,000 |
| Proceeds from the sale of long-term investment at book value | 20,000 |
| Issuance of common stock for cash | 27,000 |
| Depreciation expense | 28,000 |
| Redemption of bonds payable at carrying (book) value | 35,000 |
| Payment of cash dividends | 15,000 |
| Net income | 25,000 |
| Purchase of land by issuing bonds payable | 45,000 |
In addition, the following information is available from the comparative balance sheet for Ringo at the end of 2013 and 2014:
|
| 2014 | 2013 |
| Cash | $ 66,000 | $14,000 |
| Accounts receivable (net) | 20,000 | 16,000 |
| Prepaid insurance | 18,000 | 13,000 |
| Total current assets | $104,000 | $43,000 |
|
Accounts payable |
$ 30,000 |
$20,000 |
| Salaries payable | 3,000 | 7,000 |
| Total current liabilities | $ 33,000 | $27,000 |
Instructions Prepare Ringo's statement of cash flows for the year ended December 31, 2012 using the indirect method.
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