Preparation of cash flow statement.
Use the following information to prepare a cash flow statement for Oju Company for 20B using the indirect method. Be sure to prepare a schedule for any noncash items for disclosure, if appropriate.
a) Net income $10,000 (amortization expense, 5,000; inventory decrease, $1,000; no changes in account receivable or account payable)
b) Issued shares for $4,000 of equipment.
c) Sold equipment for $8,000, book value $8,000
d) Paid cash dividend, $3,000 (declared in prior year).
e) Paid long-term dept principal, $8,000 and short-term dept principal, $2,000.
f) Purchased equipment for $12,000 in exchange for a note payable all of which was due to be paid at the end of two years.
g) The cash balance on Jan. 1, 20B was $10,000.