Preparing Statement of Cash Flows Spreadsheet, Statement of Cash Flows, and Schedules Using Indirect Method Forrest Company is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:
|
2013 |
2012 |
|
|
Balance sheet at December 31 |
||
|
Cash |
$44,000 |
$18,000 |
|
Accounts receivable |
26,000 |
29,000 |
|
Merchandise inventory |
30,000 |
36,000 |
|
Fixed assets (net) |
76,000 |
72,000 |
|
$176,000 |
$155,000 |
|
|
Accounts payable |
$25,000 |
$22,000 |
|
Wages payable |
800 |
1,000 |
|
Note payable, long term |
38,000 |
48,000 |
|
Common stock, no par |
80,000 |
60,000 |
|
Retained earnings |
32,200 |
24,000 |
|
$176,000 |
$155,000 |
|
|
Income statement for 2013 |
||
|
Sales |
$100,000 |
|
|
Cost of goods sold |
61,000 |
|
|
Expenses |
27,000 |
|
|
Net income |
$12,000 |
Additional Data:
a. Bought fixed assets for cash, $10,000.
b. Paid $10,000 on the long term note payable.
c. Sold unissued common stock for $20,000 cash.
d. Declared and paid a $3,800 cash dividend.
e. Incurred expenses that included depreciation, $6,000; wages, $10,000; taxes, $3,000; and other, $8,000.
Required:
1. Prepare a statement of cash flows spreadsheet using the indirect method to report cash flows from operating activities.
2. Prepare the statement of cash flows.
3. Prepare a schedule of noncash investing and financing activities if necessary.