Comparative balance sheets for Erisa Magambo Company are presented below. Additional information:1. Net income for 2012 was

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Comparative balance sheets for Erisa Magambo Company are presented below.

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Additional information:1. Net income for 2012 was $125,000.2. Cash dividends of $60,000 were declared and paid.3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.4. Common stock was issued for $50,000 cash.5. Depreciation expense was $24,000.6. Sales for the year were $978,000.InstructionsPrepare a worksheet for a statement of cash flows for 2012 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference eachentry.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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