Statement of cash flows (indirect method).The net changes in the balance sheet accounts of Keating Corporation for
Question:
1. On January 2, 2011 short-term investments (classified as available-for-sale) costing $121,000 were sold for $155,000.
2. The company paid a cash dividend on February 1, 2011.
3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2011 and 2010, respectively.
4. Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2011.
5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was recorded by the parent.
6. At January 1, 2011, the cash balance was $166,000.
Instructions
Prepare a statement of cash flows (indirect method) for the year ended December 31, 2011. Keating Corporation has no securities which are classified as cashequivalents.
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Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,