Question - The following is selected information from Flotsam Company for the fiscal years ended December 31, 2015: Flotsam Company had net income of $1,500,000. Depreciation was $500,000, purchases of plant assets were $1,000,000, and disposals of plant assets for $500,000 resulted in a $40,000 loss. Stock was issued in exchange for an outstanding note payable of $725,000. Accounts receivable increased by $25,000. Accounts payable decreased by $40,000. Dividends of $300,000 were paid to shareholders. Flotsam Company had interest expense of $50,000. Cash balance on January 1, 2015 was $250,000.
Requirements: Prepare Flotsam Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.