Forrest Company is developing its annual financial statements at December 31, 2013. The statements are complete except

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Forrest Company is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:


2013 2012 Balance sheet at December 31 $ 44,000 26,000 $ 18,000 Cash Accounts receivable 29.000 Merchandise inventory Fi


Additional Data:
a. Bought fixed assets for cash, $10,000.
b. Paid $10,000 on the long-term note payable.
c. Sold unissued common stock for $20,000 cash.
d. Declared and paid a $3,800 cash dividend.
e. Incurred expenses that included depreciation, $6,000; wages, $10,000; taxes, $3,000; and other, $8,000.
Required:
1. Prepare a statement of cash flows spreadsheet using the indirect method to report cash flows from operating activities.
2. Prepare the statement of cash flows.
3. Prepare a schedule of noncash investing and financing activities ifnecessary.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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