E9-14A. Prepare the statement of cash flows using the indirect method. (LO 5, 6)
Use the following information for Just Nuts Company to prepare a statement of cash flows using the indirect method.
|
Just Nuts Company Balance Sheet |
||
|
2007 |
2006 |
|
|
Assets |
||
|
Cash |
$ 193,000 |
$ 1 20,500 |
|
Accounts receivable |
64,000 |
60,000 |
|
Inventories |
1 20,000 |
1 75,000 |
|
Land |
95,000 |
120,000 |
|
Equipment |
250,000 |
180,000 |
|
Accumulated depreciation |
(75,000) |
(45,000) |
|
Total assets |
$647,000 |
$610 ,500 |
|
Liabilities and Shareholders Equity |
||
|
Accounts payable |
$ 42,ooo |
$ 50,000 |
|
Bonds payable |
150,000 |
220,000 |
|
Common stock and additional |
||
|
paid-in capital |
200,000 |
1 80,000 |
|
Retained earnings |
245,000 |
1 60,500 |
|
Total liabilities and shareholders’ |
||
|
equity |
$647,00 |
$610,500 |
Additional information:
a. Net income for the fiscal year ended June 30, 2007, was $95,000.
b. The company declared and paid cash dividends.
c. The company redeemed bonds payable amounting to $60,000 for cash of $60,000.
d. The company issue common stock for $20,000 cash.