Prepare gunning''s statement of cash flows for the year ended


The following information is available for Gunning Corporation for the year ended December 31, 2007:

Collection of principal on long-term loan..................$35,000
Acquisition of equipment for cash.............................10,000
Proceeds from the sale of long-term investment........27,000
Issuance of common stock......................................20,000
Depreciation expense.............................................25,000
Redemption of bonds payable..................................24,000
Payment of cash dividends......................................14,000
Net income............................................................ 35,000

In addition, the following information is available from the comparative balance sheet for Gunning at the end of 2007 and 2006:

....................................................2007..........2006
Cash.......................................... $102,000....$14,000
Accounts Receivable........................25,000......15,000
Prepaid Insurance.......................... 19,000.......13,000
Total current assets.....................$146,000......$42,000

Accounts payable........................$ 30,000.... $19,000
Salaries payable..............................6,000.........7,000
Total current liabilities.................$ 36,000.....$26,000

Prepare Gunning's statement of cash flows for the year ended December 31. 2007, using the indirect method.

 

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Accounting Basics: Prepare gunning''s statement of cash flows for the year ended
Reference No:- TGS057341

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