The comparative balance sheet of Hinson Enterprises, Inc. at December 31, 2013 and 2012, is as follows:

Question:

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2012 are as follows:
a. Net income, $220,500.
b. Depreciation reported on the income statement, $72,975.
c. Equipment was purchased at a cost of $142,450, and fully depreciated equipment costing $39,200 was discarded, with no salvage realized.
d. The mortgage note payable was not due until 2014, but the terms permitted earlier payment without penalty.
e. 7,000 shares of common stock were issued at $35 for cash.
f. Cash dividends declared and paid, $134,400.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...