Question:
The Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale, was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
|
End of Year
|
Beginning of Year
|
|
Cash
|
$20,000
|
$15,000
|
|
Accounts receivable
|
19,000
|
32,000
|
|
Inventories
|
50,000
|
65,000
|
|
Accounts payable
|
12,000
|
18,000
|
|
|
|
Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.