Comparative balance sheets for International Company are as follows.

Additional information:

1. Net income for 2025 was \(\$ 100,000\).

2. Cash dividends of \(\$ 55,000\) were declared and paid.

3. Bonds payable with a carrying value of \(\$ 40,000\) were redeemed for \(\$ 40,000\) cash.

4. Common stock was issued at par for \(\$ 60,000\) cash.

5. Depreciation expense was \(\$ 24,000\).

6. Sales revenue for the year was \(\$ 978,000\).

7. Land was sold at cost, and equipment was purchased for cash.

Instructions

Prepare a worksheet for a statement of cash flows for 2025 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference each entry.

Transcribed Image Text:

Assets Cash Accounts receivable Inventory Land International Company Comparative Balance Sheets December 31 Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2025 $ 74,000 85,000 179,000 75,000 250,000 (66,000) $597,000 $ 34,000 160,000 224,000 179,000 $597,000 2024 $ 22,000 76,000 189,000 100,000 200,000 (42,000) $545,000 $ 47,000 200,000 164,000 134,000 $545,000