Preparing the statement of cash flows—indirect method The income statement of Minerals Plus, Inc., follows:
|
MINERALS PLUS, INC. Income Statement Year Ended September 30, 2012 |
||
|
Revenues: |
|
|
|
Service revenue |
|
$ 235,000 |
|
Expenses: |
|
|
|
Cost of goods sold |
$ 97,000 |
|
|
Salary expense |
57,000 |
|
|
Depreciation expense |
26,000 |
|
|
Income tax expense |
4,000 |
184,000 |
|
Net income |
|
$ 51,000 |
Additional data follow:
a. Acquisition of plant assets is $118,000. Of this amount, $100,000 is paid in cash and $18,000 by signing a note payable.
b. Cash receipt from sale of land totals $28,000. There was no gain or loss.
c. Cash receipts from issuance of common stock total $29,000.
d. Payment of note payable is $18,000.
e. Payment of dividends is $8,000.
f. From the balance sheet:
|
September 30, |
|
||
|
2012 |
2011 |
||
|
Current Assets: |
|
||
|
Cash |
$ 30,000 |
$ 8,000 |
|
|
Accounts receivable |
41,000 |
59,000 |
|
|
Inventory |
97,000 |
93,000 |
|
|
Current Liabilities: |
|
||
|
Accounts payable |
$ 30,000 |
$ 17,000 |
|
|
Accrued liabilities |
11,000 |
24,000 |
|
Requirement
1. Prepare Minerals Plus’s statement of cash flows for the year ended September 30, 2012, using the indirect method. Include a separate section for noncash investing and financing activities.