Problem - Samson Inc. purchased equipment for $62,000 cash, sold equipment costing $36,000 with a book value of $22,000 at a loss, and declared dividends during 2016. No new notes payable were issued during the year.
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Dec. 31, 2016
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Dec. 31, 2015
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Change
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|
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2016
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Cash
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$44,600
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$43,000
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$1,600
|
|
Sales revenue
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$850,000
|
|
Accounts receivable
|
31,200
|
13,800
|
17,400
|
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Cost of sales
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425,000
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Inventory
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28,000
|
21,000
|
7,000
|
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Salaries expense
|
135,000
|
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Equipment
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180,000
|
154,000
|
21,000
|
|
Depreciation expense
|
18,000
|
|
Accum. depreciation
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-46,000
|
-42,000
|
1,000
|
|
Interest expense
|
3,500
|
|
Accounts payable
|
25,400
|
36,400
|
-11,000
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Loss on sale of equipment
|
3,000
|
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Unearned revenue
|
16,200
|
21,200
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-5,000
|
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Income taxes expense
|
44,000
|
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Accrued salaries
|
7,000
|
8,800
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-1,800
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|
Net income
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$221,500
|
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Taxes payable
|
11,600
|
8,000
|
3,600
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|
|
|
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Long-term notes pay.
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37,000
|
55,000
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-18,000
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|
|
|
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Common stock
|
90,000
|
28,000
|
62,000
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|
|
|
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Retained earnings
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50,600
|
32,400
|
18,200
|
|
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Use the indirect method to prepare a cash flow statement in good form for 2016.