Problem: Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012:
December 31,
2012 2011
Current Accounts
Current Assets:
Cash & cash equivalents $92,100.00 $17,000.00
Accounts receivable $64,500.00 $69,200.00
Inventories $87,000.00 $80,000.00
Current Liabilities
Accounts Payable $57,900.00 $56,200.00
Income Tax payable $14,400.00 $17,100.00
Transaction Data for 2012:
Issuance of common stock for cash $40,000
Depreciation expense 25,000
Purchase of equipment 75,000
Acquisition of land by issuing long-term note payable 122,000
Cost basis of building sold 53,000
Payment of note payable $48,100
Payment of cash dividends 54,000
Issuance of note payable to borrow cash 67,000
Gain on sale of building 5,500
Net income 70,500
Requirement
1. Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.