Problem: A Company's net income last year was $119,000. Changes in the company's balance sheet accounts for the year appear below:
Increases
(decreases)
Debit balances:
Cash..................................$26,000
Accounts Payable.................$23,000
Accrued liabilities..................$14,000
Taxes Payable.....................$(9,000)
Bonds Payable....................$(50,000)
Deferred taxes.....................$4,000
Common Stock....................$20,000
Retained earnings.................$74,000
The company declared and paid cash dividends of $45,000 last year.
Required:
a. Construct in good form the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)
b. Construct in good form the investing activities section of the company's statement of cash flows for the year.
c. Construct in good form the financing activities section of the company's statement of cash flows for the year.