Cash Flow Statement Assignment

(Fall 2015)

The following are accounting items taken from the records of the Biden Company for 2015:

Payment of dividends to stockholders	$24,000
Decrease in accounts payable	$19,000
Decrease in accounts receivable	$21,000
Increase in inventories	$6,000
Increase in salaries payable	$18,000
Net income for 2014	$42,000
Payment for purchase of land and buildings	$58,000
Payment for long-term notes payable (principal payment: 20,000; interest expense and payment: 2,000)	$22,000
Issuance of ten-year bonds payable at par value	$40,000
Depreciation expense	$10,000
Proceeds from sale of patent rights	$26,000

Purchase equipment by issuing long-term notes $28,000

Cash (at the beginning of 2014) $200,000

Required:

Prepare the statement of cash flows for Biden Company for 2015 using the indirect method.

Cash Flow Statement Assignment (Fall 2015) The following are accounting items taken from the records of the Biden Company for 2015: Payment of dividends to stockholders Decrease in accounts payable Decrease in accounts receivable Increase in inventories Increase in salaries payable Net income for 2014 Payment for purchase of land and buildings Payment for long-term notes payable (principal payment: 20,000; interest expense and payment: 2,000) Issuance of ten-year bonds payable at par value Depreciation expense Proceeds from sale of patent rights Purchase equipment by issuing long-term notes Cash (at the beginning of 2014) $24,000 $19,000 $21,000 $6,000 $18,000 $42,000 $58,000 $22,000 $40,000 $10,000 $26,000 $28,000 $200,000 Required: Prepare the statement of cash flows for Biden Company for 2015 using the indirect method