Format of Statement of Cash Flows with Indirect Method
From the following information for Carter Corporation, prepare a statement of cash flows for the year ended December 31, 2008, using the indirect method.
|
Amortization of patent |
$ 4,000 |
|
Depreciation expense |
7,000 |
|
Issuance of common stock |
25,000 |
|
Issuance of new bonds payable |
30,000 |
|
Net income |
55,000 |
|
Payment of dividends |
22,500 |
|
Purchase of equipment |
33,200 |
|
Retirement of long term debt |
40,000 |
|
Sale of land (includes $6,000 gain) |
35,000 |
|
Decrease in accounts receivable |
2,100 |
|
Increase in inventory |
1,200 |
|
Increase in accounts payable |
1,500 |
|
Increase in cash |
56,700 |
|
Cash balance, January 1, 2008 |
82,800 |