Question: 15. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Keating Corporation for the year 2018 are shown below.
15. Statement of cash flows (indirect method). The net changes in the balance sheet accounts of Keating Corporation for the year 2018 are shown below. 87,000 78,200 74,200 DebitCredit $121,000 13,300 22,800 Cash Account Short-term investments Accounts receivable Allowance for doubtful accounts Prepaid expenses Investment in subsidiary (equity method) Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, $10 par Additional paid-in capital Retained earnings-Appropriation for bonded indebtedness60,000 25,000 130,000 21,500 70,000 210,000 80,700 15,500 90,000 $643.600 $643,600 An analysis of the Retained Earnings-Unappropriated account follows: Retained earnings unappropriated, December 31, 2017 Add: Net income $1,300,000 307,000 Transfer from appropriation for bonded indebtedness Total $1,667,000 Deduct: Cash dividends Stock dividend $165,000 Retained carnings unappropriated, December 31, 2018 405.000 $1,262,000 1. On January 2, 2018 short-term investments (classified as available-for-sale) costing $121,000 2. The company paid a cash dividend on February 1, 2018. were sold for $155,000. 3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2018 and 2017, respectively during the year. No assets were retired during 2018. the parent 4.Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account S. The wholly owned subsidiary reported a net loss for the year of $25,000. The loss was recorded by 6. At January 1, 2018, the cash balance was $166,000. Instructions Prepare a statement of cash flows (indirect method) for the year ended December 31, 2018. Keating Corporation has no securities which are classified as cash equivalents
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