This exercise continues the accounting for Lydon€™s Yard Care, Inc., from the Continuing Exercise in Chapter 10. Assume that Lydon€™s Yard Care, Inc., had the following comparative balance sheet at the end of 2013, its second year of operations.

Requirement
1. Prepare the statement of cash flows for Lydon€™s Yard Care, Inc., for the year ending December 31, 2013 using the indirect method. The following additional information applies to 2013:
–  Common stock was issued at par value.
–  No dividends were declared or paid during the year.
–  No equipment was sold during the year and all purchases of equipment were forcash.

Transcribed Image Text:

Lydon's Yard Care, Inc. Comparative Balance Sheet December 31, 2013 and 2012 2013 2012 ASSETS Cash Accounts Receivable Lawn Supplies Equipment Less Accumulated Depreciation) Total Assets S13,46$18,600 200 150 6,090 1,200 150 521,000 $20,000 2,520 189 1,260) LIABILITIES Accounts Payable Notes Payable (long-term) S 273 S 1,200 10,000 STOCKHOLDERS EQUITY Common Stock Retained Earnings 4,410 16.317 1.500 7,300 Total Liabilities and Stockholdars' Equity 21,000 S20,000