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
June 30

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.