Statement of Cash Flows—Indirect Method
Following is information for Goulding Manufacturing Company:
(a) Long term debt of $500,000 was retired at face value.
(b) New machinery was purchased for $62,000.
(c) Common stock with a par value of $100,000 was issued for $160,000.
(d) Dividends of $22,000 declared in 2007 were paid in January 2008, and dividends of $30,000 were declared in December 2008, to be paid in 2009.
(e) Net income was $450,700. Included in the computation were depreciation expense of $70,000 and intangible assets amortization of $10,000.
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|
Dec 31, 2008 |
Dec 31, 2007 |
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Current assets: |
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|
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Cash and cash equivalents |
$189,200 |
$130,000 |
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Accounts receivable |
175,000 |
156,000 |
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Inventory |
178,000 |
160,000 |
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Current liabilities: |
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|
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Accounts payable |
64,000 |
87,400 |
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Dividends payable |
30,000 |
22,000 |
|
Interest payable |
12,900 |
7,000 |
|
Wages payable |
24,000 |
17,000 |
Prepare a statement of cash flows for the year ended December 31, 2008, using the indirect method.