Statement of Cash Flows—Indirect Method
The following information was obtained from analysis of selected accounts of Orlando Company for the year ended December 31, 2008.
Increase in long term debt |
$ 57,000 |
Purchase of treasury stock |
52,000 |
Depreciation and amortization |
197,000 |
Gain on sale of equipment (included in net income) |
6,000 |
Proceeds from issuance of common stock |
184,000 |
Purchase of equipment |
434,000 |
Proceeds from sale of equipment |
20,000 |
Payment of dividends |
49,000 |
Net income |
375,000 |
Increase (decrease) in working capital accounts: |
|
Cash |
$ 45,000 |
Accounts receivable |
229,000 |
Inventories |
275,000 |
Trade notes payable |
167,000 |
Accounts payable |
124,000 |
Income taxes payable |
(34,000) |
Cash balance, January 1, 2008 |
120,000 |
Instructions: From the information given, prepare a statement of cash flows using the indirect method.