Use the following information for Problems 15-36 and 15-37: Solpoder Corporation has the following comparative financial statements:
Assets Cash $ 49,500 $ 81,000 Accounts receivable, net 135,000 108,000 Inventory 27,000 54,000 Plant and equipment 180,000 180,000 Accumulated depreciation (36,000) (45,000) Total assets $355,500 $378,000 Liabilities and equity Accounts payable $ 57,600 $ 18,000 Common stock 190,800 207,000 Retained earnings 107,100 153,000 Total liabilities and equity $355,500 $378,000
Solpoder Corporation Income Statement For the Year Ended December 31, 2016
Sales $ 297,000 Less: Cost of goods sold (175,500) Gross margin $ 121,500 Less: Operating expenses (58,500) Net income $ 63,000 Dividends of $17,100 were paid.
No equipment was purchased or retired during the current year.
OBJECTIVE 2 Problem 15-36 Statement of Cash Flows, Indirect Method Refer to the information for Solpoder Corporation on the previous page.
Required: Prepare a statement of cash flows using the direct method. Expert