Alegre Retail Corporation”s most recent comparative Balance Sheet is as follows:
|
|
Ending |
Beginning |
|
Assets |
|
|
|
Cash |
$ 7,000 |
$ 12,000 |
|
Accounts receivable, net |
11,000 |
2,000 |
|
Merchandise inventory |
39,000 |
24,000 |
|
Long term investments |
23,000 |
9,000 |
|
Equipment |
83,000 |
100,000 |
|
Accumulated depreciation |
(66,000) |
(62,000) |
|
Total assets |
$97,000 |
$ 85,000 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Accounts payable |
$ 9,000 |
$28,000 |
|
Taxes payable |
1,000 |
2,000 |
|
Notes payable |
16,000 |
10,000 |
|
Common stock |
42,000 |
30,000 |
|
Retained earnings |
29,000 |
15,000 |
|
Total liabilities and stockholders’ equity |
$97,000 |
$85,000 |
Alegre”s net income was $34,000. No direct exchange transactions occurred at Alegre during the year. No equipment was purchased. There was a gain of $3,000 when equipment was sold. The accumulated depreciation on the equipment sold was$12,000. Cash dividends of $20,000 were declared and paid during the year. Alegreuses the indirect method to prepare its statement of cash flows.
Required:
Prepare Alegre”s statement of cash flows.