Cash Flow Statement Assignment
The following are accounting items taken from the records of the Biden Company for 2015:
|
Payment of dividends to stockholders
|
$24,000
|
|
Decrease in accounts payable
|
$19,000
|
|
Decrease in accounts receivable
|
$21,000
|
|
Increase in inventories
|
$6,000
|
|
Increase in salaries payable
|
$18,000
|
|
Net income for 2014
|
$42,000
|
|
Payment for purchase of land and buildings
|
$58,000
|
|
Payment for long-term notes payable (principal payment: 20,000; interest expense and payment: 2,000)
|
$22,000
|
|
Issuance of ten-year bonds payable at par value
|
$40,000
|
|
Depreciation expense
|
$10,000
|
|
Proceeds from sale of patent rights
|
$26,000
|
Purchase equipment by issuing long-term notes $28,000
Cash (at the beginning of 2014) $200,000
Required:
Prepare the statement of cash flows for Biden Company for 2015 using the indirect method.