Question - The balance sheets for ABC Company showed the following information. Additional information concerning transactions and events during 2015 are presented below.
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ABC Company Balance Sheet
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December 31
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2015
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2014
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Cash
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$35,900
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$10,200
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Accounts receivable (net)
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38,300
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20,300
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Inventory
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35,000
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42,000
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Long-term investments
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0
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15,000
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Property, plant & equipment
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236,500
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150,000
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Accumulated depreciation
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(37,700)
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(25,000)
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$308,000
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$212,500
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Accounts payable
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$17,000
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$26,500
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Accrued liabilities
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21,000
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17,000
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Long-term notes payable
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70,000
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50,000
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Common stock
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130,000
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90,000
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Retained earnings
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70,000
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29,000
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$308,000
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$212,500
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Additional data:
1. Net income for the year ended December 31, 2015, $71,000.
2. Depreciation on plant assets for the year, $12,700.
3. Sold the long-term investments for $28,000 (assume gain or loss is ordinary).
4. Paid cash dividends of $30,000.
5. Purchased machinery costing $26,500, paid cash.
6. Purchased machinery and received a $60,000 long-term note loan (assume no cash was received or paid by the company in this transaction).
7. Paid a $40,000 long-term note payable by issuing common stock.
Instructions - Using the format provided on the next page, prepare a statement of cash flows (using the indirect method for the operating activities section) for 2015 for ABC Company.