Prepare a statement a cash flow using the indirect method


Solve the below problem:

Q: The comparative balance sheet of Hinson Enterprises, Inc. at December 31,2013 and 2012 is as follows

Dec. 31 2013 Dec. 31, 2012

Cash 128275 157325

Accounts Receivable 196525 211750

Merchandise inventory 281400 261800

Prepaid expense 11725 8400

equipment 573125 469875

Accumulated depreciation- Equipment - (149450) (115675)

1041600 993475

Accounts Payable (merchandise creditors) 218925 207900

Mortgage notes Payable 0 294000

Common Stocks, $1 par 91000 21000

Paid-in capital in excess of par-common 455000 280000

stock

Retained earnings 276675 190575

1041600 993475

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2013 are as follows:

A) Net income 220500

B) Depreciation reported on the Income statement 72975

C) Equipment was Purchased at a cost of 142450 and fully decpreciated equipment costing 39200 was discarded with no salvage realized

D) the morgage note payable was not due until 2014, but the terms permitted eailer payment without penalty

E) 7000 shares of common stocks were issued at $35 for cash

F) Cash dividends declared and paid, 134400

Prepare a statement a cash flow using the indirect method of presenting cash flows from operating activites. If needed, use the minus sign to indicate cash outflows, negative amounts or a decrease in cash.

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Accounting Basics: Prepare a statement a cash flow using the indirect method
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