A B C D E Test 5 - Problem 1 26 points Use the following information and the form below to complete the INDIRECT statement of cash flows for year 20x2. 5 6 Data: 7 8 10 Assets Cash Accounts receivable Inventories Investments Land Equipment Accumulated depreciation - equipment Total assets Dec. 31, 20X2 Dec. 31, 20X1 $ 600,000 $ 500,000 227,840 208,960 641,760 617,120 240,000 328,000 705,120 553,120 (166,400) (148,000) 2,336,320 $ 1,971 200 12 13 14 15 16 17 18 19 20 Liabilities and Stockholders' Equity Accounts Payable (merchandise creditors) Accrued Expenses Payable (operating expenses) Dividends Payable Common stock, $4 par Paid-in-capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity 21 424,480 42.240 24,000 150,000 417,500 1,278,100 2,336,320$ 404,960 52,640 19,200 100,000 280,000 1,114,400 1,971 200 22 23 24 $ 25 25 a. 27 b. 28 c. Investments were sold for $280,000 cash. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $259,700 credit to Retained Earnings for net income. There was a $96.000 debit to Retained Earnings for cash dividends declared. 29 d. 30 e 31 . 32 33 Statement of Cash Flows Indirect.Method 3A Sheet1 2 3 Statement of Cash Flows Indirect Method 34 35 36 37 38 39 40 41 42 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Sheet1 +