Problem:
Need assistance with preparing a statement of cash flows using indirect method.
Use the following data for Levine Corporation to prepare a statement of cash flows using the indirect method for the quarter ended June 30, 20x2.
Levine Corporation
Income Statement
For the quarter Ended June 30, 20x2
Net Sales $44,550
Less Expenses
Cost of Good Sold $32,860
Depreciation Expense 800
Amortization Expense 390
Wages Expense 4,550
Supplies Expense 200
Loss of Sale of Plant Asset 100
Interest Expense 650
Income Taxes Expense 1,900
Total Expenses 41,450
Net Income $ 3,100
Levine Corporation
Comparative Balance Sheets
June 30, 20x2 and 20x1
Assets 20x2 20x1
Cash $ 730 $ 590
Accounts Receivable (net) 3,130 2,670
Inventory 2,090 2,385
Supplies 30 45
Plant and Equipment 59,000 58,050
Accumulated Depreciation (22,550) (21,900)
Trademark 1,150 1,300
Total Assets $ 43,580 $ 43,140
Liabilities
Accounts Payable $ 1,310 $ 1,190
Wages Payable 230 265
Income taxes Payable 435 380
Notes Payable 5,250 5.450
Total Liabilities $ 7,255 $ 7,285
Stockholders' Equity
Common Stock $ 32,100 $ 31,900
Retained Earnings 4,255 3,955
Total Stockholders' Equity $ 36,355 $ 35,855
Total Liabilities and Stockholders' Equity $43,580 $ 43,140
Additional information:
A plant asset originally costing $450 was sold.
The outstanding notes are long-term. A $2,000 note was issued during 20x2.