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Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Show all work necessary.
See attached file for full problem description.
The comparative balance sheet of Everlast Flooring Co. for June 30, 2003 and 2002, is as follows
June 30, 2003 June 30, 2002
Cash $124,200 $67,900
Accounts Receivable (net) 102,400 97,600
Inventories 142,700 123,500
Investments 0 58,000
Land 124,000 0
Equipment 373,400 201,400
Accumulated Depreciation (79,400) (58,900)
Liabilities and Stockholders' Equity
Accounts Payable (Merchandise creditors) $93,200 $84,600
Accrued Expenses (Operating Expenses) 13,000 12,300
Dividends Payable 15,000 12,500
Common Stock, $10 par 120,000 80,000
Paid-in Capital in excess of par—common stock 310,000 130,000
Retained earnings 236,100 170,100
The following additional information was taken from the records of Everlast Flooring Co
a. Equipment and land were acquired for cash
b. There was no disposals of equipment during the year
c. The investments were sold for $50,000 cash
d. The common stock was issued for cash
e. There was a $126,000 credit to Retained Earnings for net income
f. There was $60,000 debit to retained Earnings for cash dividends declared
Prepared a statement of cash flows, using the indirect method of presenting cash flows from operating activities
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