Question # 1
The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012, is shown as follows:
The following additional information was taken from the records:
The investments were sold for $105,000 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $58,140 credit to Retained Earnings for net income.
There was a $36,000 debit to Retained Earnings for cash dividends declared.
Instructions:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities . Use the minus sign to indicate cash outflows, negative amounts or a decrease in cash.