Statement of Cash Flows Problem
On the basis of the following data for Breach Co. for the year ended December 31, 2016 and the preceding year, prepare the attached statement of cash flows using the indirect method of reporting cash flows from operating activities. Fill in the blanks and boxes in the accompanying Excel Sheet with the missing information. A worksheet is attached below for your use.
Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.
Stock was issued for cash - 3,200 shares at $10 par.
Net income for 2016 was $76,000.
Cash dividends declared and paid were $13,000.
YearYear20162015Cash170,000$ 74,000Accounts receivable (net)78,00085,000Inventories106,50090,000Equipment395,000370,000Accumulated depreciation(195,000)(158,000)554,500$ 461,000$ Accounts payable (merchandise creditors)51,000$ 50,000$ Taxes payable2,5005,000Common stock, $10 par262,000230,000Retained earnings239,000176,000Totals554,500$ 461,000