On the basis of the following data for Teller Co. for 2006 and the preceding year ended December 31, 2005, prepare a statement of cash flows in excel. Use the indirect method of reporting cash flows from operating activities.
Additional Information
1) Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000;
2) The stock was issued for cash;
3) The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
Balance Sheet:
|
|
Year
|
Year
|
|
|
2006
|
2005
|
|
Cash
|
$100,000
|
$ 78,000
|
|
Accounts receivable (net)
|
78,000
|
85,000
|
|
Inventories
|
101,500
|
90,000
|
|
Equipment
|
410,000
|
370,000
|
|
Accumulated depreciation
|
(150,000)
|
(158,000)
|
|
|
$539,500
|
$465,000
|
|
|
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|
========
|
|
|
|
|
|
Accounts payable (merchandise creditors)
|
$ 58,500
|
$ 55,000
|
|
Cash dividends payable
|
5,000
|
4,000
|
|
Common stock, $10 par
|
200,000
|
170,000
|
|
Paid-in capital in excess of par--common stock
|
62,000
|
60,000
|
|
Retained earnings
|
214,000
|
176,000
|
|
|
$539,500
|
$465,000
|
|
|
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|
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|