Estes Company listed the net changes in its balance sheet accounts for the past year as follows:

The following additional information is available about last year€™s activities:
a. Net income for the year was $ ? .
b. The company sold equipment during the year for $35,000. The equipment originally cost the company $160,000, and it had $145,000 in accumulated depreciation at the time of sale.
c. The company declared and paid $10,000 in cash dividends during the year.
d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:

e. The balance in the Cash account at the beginning of the year was $109,000; the balance at the end of the year was $ ? .
f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.

Required:
Using the indirect method, prepare a statement of cash flows for theyear.

Transcribed Image Text:

Credits> Debits by: Debits > Credits by: $51,000 Cash Accounts receivable Inventory. 170,000 4,000 90,000 63,000 Long-term loans to subsidiaries.. Long-term investments . .. Plant and equipment. 80,000 340,000 65,000 48,000 Accounts payable. 5,000 Income taxes payable. Bonds payable.. Common stock.... Retained earnings . . . 9,000 200,000 120,000 75,000 $660,000 $660,000 Beginning Ending $2,850,000 $3,190,000 $975,000 $1,040,000 Accumulated depreciation