Question

Bristol Corporation’s income statement for the year ended June 30, 2011, and its comparative balance sheets for June 30, 2011 and 2010 follow.
Bristol Corporation
Income Statement
For the Year Ended June 30, 2011
Sales ............... $234,000
Cost of goods sold .......... 156,000
Gross margin ............ $ 78,000
Operating expenses ......... 45,000
Operating income ........... $ 33,000
Interest expense .......... 2,800
Income before income taxes ...... $ 30,200
Income taxes expense ......... 12,300
Net income ............. $ 17,900


Bristol issued a $22,000 note payable for purchase of furniture; sold furniture that cost $27,000 with accumulated depreciation of $15,300 at carrying value; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300. Prepare Bristol’s statement of cash flows for the year ended June 30, 2011, using the indirectmethod.


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  • CreatedSeptember 10, 2014
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