Barton Company uses the indirect method of preparing the Statement of Cash Flows and reports the following comparative balance sheet information. As customary, the most recent data is in the first column.
Balance Sheets 12-31-2012 12-31-2011
Cash $ 70,000 $ 80,000
Inventory 135,000 155,000
Equipment 255,000 205,000
Accumulated depreciation (40,000) (25,000)
420,000 415,000
Accounts Payable $ 87,000 $ 110,000
Bonds Payable 73,000 80,000
Common Stock 120,000 110,000
Retained Earnings 140,000 115,000
420,000 415,000
Addiadditional Information:
Net income for 2012 was $30,000. No equipment was disposed of during 2012.
Required: Prepare a Cash Flow Statement using the indirect method.