The comparative statements of financial position for Hinckley Corporation show the following information.

Additional data related to 2010 are as follows.
1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.
2. $10,000 of the long-term note payable was paid by issuing ordinary shares.
3. Cash dividends paid were $5,000.
4. On January 1, 2010, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,000.
5. Equity investments (non-trading) were sold at $1,700 above their cost.
6. Cash was paid for the acquisition of equipment.
7. A long-term note for $16,000 was issued for the acquisition of equipment.
8. Interest of $2,000 and income taxes of $6,500 were paid in cash.

Prepare a statement of cash flows using the indirectmethod.

  • CreatedJune 17, 2013
  • Files Included
Post your question