Reference no: EM133064231
Question - The Sagle Corporation prepared, for 20x2 and 20x1, the following balance sheet data:
|
|
20x2
|
20x1
|
|
Cash
|
87,375
|
63,750
|
|
Investment in Available for Sales Securities
|
17,250
|
105,000
|
|
Accounts Receivable
|
90,000
|
86,250
|
|
Merchandise Inventory
|
187,500
|
163,500
|
|
Prepaid Insurance
|
1,125
|
1,500
|
|
Land, Building and Equipment
|
1,378,875
|
1,087,500
|
|
Accum. Depreciation
|
(558,750)
|
(498,750)
|
|
Total
|
1,203,375
|
1,008,750
|
|
Accounts Payable
|
153,375
|
236,250
|
|
Salaries Payable
|
18,750
|
26,250
|
|
Notes Payable (current)
|
37,500
|
150,000
|
|
Bonds Payable
|
375,000
|
0
|
|
Common Stock
|
600,000
|
600,000
|
|
Retained Earnings
|
18,750
|
(3,750)
|
|
Total
|
1,203,375
|
1,008,750
|
Additional Information:
a) Sold avaiable-for-sale securities costing $87,750 for $90,000.
b) Equipment costing $18,750 with a book value of $3,750 was sold for $4,500.
c) Issued 8% bonds payable at par, $375,000.
d) Purchased new quipment for cash, $310,125.
e) Paid cash dividends of $22,500 during the year.
f) Net income for 20x2 was $45,000.
Required - Prepare the cash flow statement (operating, investing and financing activities) for Sagle for 20x2, using the indirect method for the operating activities.