Question
The following information is available for the Roots Heritage Corp. for the year ended Dec. 31, 2015: Collection of principal on long term loan to
- The following information is available for the Roots Heritage Corp. for the year ended Dec. 31, 2015:
Collection of principal on long term loan to a supplier $35,000
Purchase of equipment for cash 10,000
Proceeds from sale of long-term investment at book value .. 27,000
Issuance of common stock for cash .. 20,000
Depreciation expense for the year 25,000
Redemption of bonds at carrying value . 24,000
Payment of cash dividends 9,000
Net income . 30,000
Purchase of land by issuing bonds payable 40,000
In addition, the following information is available from the comparative balance sheet for 2015 & 2014:
2015 2014
Cash . $102,000 $ 14,000
Accounts receivable (net) 20,000 15,000
Prepaid insurance 17,000 13,000
Total current assets . $139,000 $ 42,000
Accounts payable $ 25,000 $ 19,000
Salaries payable .. 4,000 7,000
Total current liabilities $ 29,000 $ 26,000
Required: Prepare a statement of cash flows using the indirect method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started