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Taguchi Company Statement of Cash Flows - Indirect Method

Taguchi Company
Comparative Balance
December 31

Assets 2008 2007
Cash 73,000 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total 597,000 555,000

Liabilities and Stockholder's equity
Accounts payable 39,000 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total 597,000 555,000

Additional information:
1. Net income for 2008 was 103,000.
2. Cash dividends of 45,000 were declared and paid.
3. Bonds payable amounting to 50,000 were redeemed for cash 50,000.
4. Common stock was issued for 42,000 cash.
5. No equipment was sold during 2008.

Instructions
Prepare a statement of cash flows for 2008 using the indirect method.

Solution Summary

This solution prepares a statement of cash flows for 2008 using the indirect method in an excel file.

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