The comparative balance sheets for Kohl Company appear below.

Instructions:

Prepare a statement of cash flows for the year ended December 31, 2005, using the indirect method.

Additional Information:

1. Net income for the year ending December 31, 2005 was $20,000.

2. Cash dividends of $12,000 were declared and paid during the year.

3. Long-term investments that had a cost of $18,000 were sold for $16,000.

4. Sales for 2005 were $120,000.

KOHL COMPANY

Comparative BalanceSheet

Transcribed Image Text:

12/31/2005 12/31/2004 ASSETS Cash Accounts Receivable Prepaid Expenses Inventory Long-Term Investments Equipment Accum. Depr. Equip 23,000 18,000 6.000 27,000 12,000 14,000 9.000 18.000 18,000 30,000 14.000 87,000 60,000 18.000 116.000 Total Assets Liabilities & Stockholders' Equit Accounts Payable Bonds Payable Common Stock Retained Earnings 21,000 37,000 40,000 18.000 116.000 9,000 45.000 23,000 10.000 87,000 Total Liabilities & SHE