Willingham Corporation's comparative balance sheets are presented below.
Comparative Balance Sheets
Cash $14,190 $10,830
Accounts receivable $21,040 $23,380
Land 20,880 26,210
Building 70,180 70,180
Accumulated depreciation (15,170) (10,340)
Total 111,120 120,260
Accounts payable $12,190 $31,170
Common stock 75,000 68,870
Retained earnings 23,930 20,220
Total $111,120 $120,260
Net income was $22,890. Dividends declared and paid were $19,180.
All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,800.
Prepare a statement of cash flows for 2011 using the indirect method.
Your tutorial includes an Excel template useful for similar other problems. Click in cells to see computation. The hardest part is to know to compute the loss on sale for the land. Instructional tips are on sheet.