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Cash Flow Statement - Indirect Method

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Condensed financial data of Odgers Inc. follow.(attached)

Additional information:
1. New plant assets costing $153,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $87,975 and accumulated depreciation of $74,205 were sold for $2,295 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $39,827 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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The solution file contains step by step method of preparation of cash flow statement using the indirect method.

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Radhika Lakshmi, MPhil
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  • MCom, Annamalai University
  • IATA, International Air Transport Association
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