On the basis of the following data for breach co. For the year ended December 31, 2011 and the preceding year, prepare a statement of cash flows using the indirect message of reporting cash flows from operating activities. Assume the equipment costing $25,000 was purchased for cash and no long term assets were sold during the period. Stock was issued for cash -3200 shares a par. Net income for 2011
was 76,000. Cash dividends declared and paid were 13,000.
Breach company
Comparative balance sheet
December 31, 2011
2011. 2012
Cash $170,000. $74,000
Accounts receivable 78000. 85000
Inventories. 106500. 90000
Equipment 395000. 370000
Accumulated depreciation. (195000). (158000)
Total assets. 554500. 461000
Accounts payable. 51000. 50000
Taxes payable. 2500. 5000
Common stock, $10 par. 262000. 230000
Retained earnings. 239000. 176000
Total liabilities and
Stockholders equity. 554500. 461000