Solution-How to prepare a statement of cash flows for the

How to prepare a statement of cash flows for the year

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Reference no: EM13513805

The comparative balance sheets for Gould Company as of December 31 are presented below.

GOULD COMPANY
Comparative Balance Sheets
December 31
Assets	2011	2010
Cash	$ 71,290	$ 44,830
Accounts receivable	44,040	62,020
Inventory	151,350	141,860
Prepaid expenses	14,990	21,460
Land	104,900	130,260
Equipment	228,190	154,960
Acc. depr. - equipment	(44,620)	(35,020)
Building	199,840	199,840
Acc. depr. - building	(60,390)	(39,940)
Total	$709,590	$680,270

Liabilities and Stockholders' Equity
Accounts payable	$ 48,140	$ 39,560
Bonds payable	259,810	299,710
Common stock, $1 par	199,800	159,900
Retained earnings	201,840	181,100
Total	$709,590	$680,270

Additional information:

Operating expenses include depreciation expense of $41,790 and charges from prepaid expenses of $6,470.
Land was sold for cash at book value.
Cash dividends of $16,160 were paid.
Net income for 2011 was $36,900.
Equipment was purchased for $94,560 cash. In addition, equipment costing $21,330 with a book value of $9,590 was sold for $6,230 cash.
Bonds were converted at face value by issuing 39,900 shares of $1 par value common stock.

Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.

Reference no: EM13513805

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How to prepare a statement of cash flows for the year

Reference no: EM13513805

Reference no: EM13513805

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