North Western Company provides the following financial information. Prepare a statement of cash flows for 2012, using the indirect method to report cash flows from operatingactivities.

Transcribed Image Text:

North Western Company Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets $ 4,500 33,000 75,000 $ 9,000 36,000 60,000 225,000 $ 330,000 Cash and cash equivalents. Accounts receivable (net) Inventory. Plant and equipment (net) Total assets 262,500 $375,000 Liabilities and Stockholders' Equity S 60,000 225,000 90,000 $375,000 S 54,000 217,500 58,500 S 330,000 Accounts payable. Capital stock . Retained earnings. Total liabilities and stockholders' equity North Western Company Income Statement For the Year Ended December 31, 2012 Sales. Cost of goods sold. Gross margin. Operating expenses Net income S412,500 225,000 $187,500 135,000 S 52,500 Note: Dividends of S21,000 were declared and paid during 2012. Depreciation expense for the year was $22,500.