Toys Galore Company provided the following balance sheet and income statement information: Balance Sheet at December 31
Question:
Toys Galore Company provided the following balance sheet and income statement information:
Balance Sheet at December 31 | Year 2 | Year 1 |
Cash | $ 1,400 | $ 6,000 |
Accounts receivable | 13,500 | 12,000 |
Inventory | 9,800 | 4,500 |
Prepaid insurance | 1,200 | 900 |
Equipment, net | 35,700 | 38,000 |
Total assets | $61,600 | $61,400 |
Accounts payable | $ 13,100 | $ 12,600 |
Wages payable | 7,400 | 8,000 |
Long-term note payable | 17,000 | 25,500 |
Common stock | 15,000 | 8,000 |
Retained earnings | 9,100 | 7,300 |
Total liabilities & shareholders' equity | $61,600 | $61,400 |
Income Statement for Year 2 | |
Sales | $ 101,500 |
Cost of goods sold | 49,500 |
Depreciation expense | 5,700 |
Other operating expenses | 27,800 |
Impairment loss on equipment | 2,200 |
Interest expense | 2,100 |
Income taxes expense | 6,000 |
Net income | $ 8,200 |
Using the financial data for Toys Galore Company and the table on the following page, prepare the statement of cash flow using the indirect method for Year 2 (assume there were no equipment disposals/sales during the year).