The following information is available for Mergenthaler Corporation for the year ended December 31, 2014:

Collection of principal on long-term loan to a supplier		$16,000
Acquisition of equipment for cash		10,000
Proceeds from the sale of long-term investment at book value		22,000
Issuance of common stock for cash		20,000
Depreciation expense		25,000
Redemption of bonds payable at carrying (book) value		34,000
Payment of cash dividends		6,000
Net income		30,000
Purchase of land by issuing bonds payable		40,000

In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2014 and 2013:

		2014		2013
Cash		$148,000		$91,000
Accounts receivable (net)		25,000		15,000
Prepaid insurance		19,000		13,000
Total current assets		$192,000		$119,000
Accounts payable		$30,000		$19,000
Salaries and wages payable		6,000		7,000
Total current liabilities		$36,000		$26,000

Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer rating: 100% (QA)

Required solution MERGENTHALER CORPORATION Statement of Cash Flows For the Year Ended December 31 20... View the full answer