Question - HORNGREN'S Financial & Managerial Accounting
Preparing the statement of cash flows-indirect method
Accountants for Carlson, Inc. have assembled the following data for the year ended December 31, 2016:
2016 2015
Current Assets:
Cash $ 89,200 18,000
Accounts Receivable 64,600 68,800 Merchandise Inventory 85,000 77,000
Current Liabilities:
Accounts Payable $ 57,500 $ 55,400 Income Tax Payable 14,700 16,200
Transaction Data for 2016:
Issuance of common stock for cash $ 38,000
Depreciation expense 21,000
Purchase of equipment with cash 73,000
Acquisition of land by issuing long-term notes payable 122,000
Book value of building sold 55,000
Payment of notes payable $ 51,100
Payment of cash dividends 46,000
Issuance of notes payable to borrow cash 61,000
Gain on sale of building 2,000
Net income 69,500
REQUIREMENTS - Prepare Carlson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.