Using the indirect method, prepare a statement of cash flows from wu corporation. Include a supporting schedule of non cash investing transactions and financing transactions.

CHAPTER 14 The Statement of Cash Flows 708 Comparative Balance Sheets December 31, 2011 and 2010 Wu Company 2011 2010 $164,800 $ 50,000 165.200 200,000 350,000 450,000 Assets Cash Accounts receivable (net) Merchandise inventory Prepaid rent Furniture and fixtures Accumulated deprec Total assets 2,000 3,000 148,000 144,000 ures (42,000) 4000 5788000 5823000 24.00 camlited depreciation,furmiture and fat Liabilities and Stockholders Equity $143,400 $200,400 1,400 40,000 Accounts payable Income taxes payable Notes payable (long-term) Bonds payable Common stock, $20 par value Additional paid-in capital Retained earnings Total liabilities and stockholders equity 40,0004,400 00,000 200,000 240,000 200,000 181,440 121,440 81.76076760 20,000 $788000 $823,000 Wu Company Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin Operating expenses (including depreciation expense of $46,800) Income from operations Other income (expenses) $1,609,000 1,127,800 481 200 449 400 $ 31,800 Gain on sale of furniture and fixtures s 7000 Interest expense Income before income taxes Income taxes expense Net income 23,200)(16,200) $ 15,600 4,600 % During 2011, Wu Corporation engaged in these transactions: a. Sold at a gain of $7,000 furniture and fixtures that cost $35,600, on which a Schad accumulated dep furi sest at con 35600 onwhich KRit had accumulated depreciation of $28,800 b. Purchased furniture and fixtures in the amount of $39,600 read, c. Paid a $20,000 note payable and borrowed $40,000 on a new not. d. Converted bonds payable in the amount of $100,000 into 4,000 shares common stock. e. Declared and paid $6,000 in cash dividends