Prepare a statement of cash flows using the indirect method.
Statement of Cash Flows.
Sharp Company
Comparative Balance Sheet
December 31
_____________________________________2015 _____2014
Cash.............................................$ 54,000.....................$ 36,000
Accounts receivable, net........................53,000........................57,000
Inventory.......................................161,000......................123,000
Land.............................................180,000......................285,000
Building........................................300,000......................300,000
Accumulated depreciation-building.......(75,000).......................(60,000)
Equipment...................................1,565,000.......................900,000
Accumulated depreciation-equipment..(177,000).....................(141,000)
..............................................$2,061,000...................$1,500,000
Accounts payable.........................$ 202,000.....................$ 150,000
Bonds payable...............................450,000..............................-0-
Capital stock, $10 par....................1,250,000.....................1,250,000
Retained earnings...........................159,000........................100,000
.............................................$2,061,000....................$1,500,000
Additional Data:
1. Net income for the year amounted to $109,000.
2. Cash dividends were paid amounting to 4% of par value.
3. Land was sold for $120,000.
4. Sharp sold equipment, which cost $225,000 and had accumulated depreciation of $90,000, for $115,000.