Exercise 5-36 STATEMENT OF CASH FLOWS-INDIRECT METHOD The following are financial statements for LaForge Company: Laforge Company Comparative Balance Sheet December 31, 2005 and 2004 (Dollars in...

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Extracted text: Exercise 5-36 STATEMENT OF CASH FLOWS-INDIRECT METHOD The following are financial statements for LaForge Company: Laforge Company Comparative Balance Sheet December 31, 2005 and 2004 (Dollars in thousands) 2005 2004 Assets Cosh Accounts receivable Inventory Prepoid general expenses Plant aseh Accumulated depreciafion plant asets Tokal asseh $ 22 200 125 18 1,019 (527) S 857 $ 16 250 95 10 1,000 (997) S 774 ..... .... .... Liabilities and Stockholders' Equity Accounts payable Interest poyable Income taves payoble Bonds payable Common slock Retained eornings Tokal lobilties and stockholders equity $ 50 $ 75 10 90 117 338 .... 107 77 300 232 $ 774 227 S 857 laforge Company Condensed Income Stotement For the Year Ended December 31, 2005 (Dollars in thousands) $1,300 Soles Cost of goods sold Gross proft Operating expenses Depreciation expere General expensn terest erpense Income kax epen $ 420 $ 60 240 15 35 .... ...... 350 ....... 70 Net income The following information is also available for 200s: () Plant assets were sold for their book value of $200 during the year. The assets had an original cost of $330. (b) Cash dividends totaling $75 were paid during the year. () All accounts payable relate to inventory puurchases. (d) All purchases of plant assets were cash transactions DEMO PROBLEM Prepare a statement of cash flows for 2005 using the indirect method.