Exercise

Statement of Cash Flows $($Indirect Method$)$ Use the following information regarding the Lund Corporation to $($a$)$ prepare a statement of cash flows using the indirect method and $($b$)$ compute Lund's operating$-$cash$-$flow$-$to$-$current$-$liabilities ratio.

Accounts payable increase.

Accounts receivable increase.

Accrued liabilities decrease

Amortization expense. $.$

Cash balance, January $1$

Cash balance, December $31$

Cash paid as dividends

Cash paid to purchase land $...$

Cash paid to retire bonds payable at par

Cash received from issuance of common stock

Cash received from sale of equipment.

Depreciation expense.

Gain on sale of equipment

Inventory decrea$$e

Net income.

Prepaid expenses increase

Average current liabilities

$9,000$

$4,000$

$3,000$

$6,000$

$22,000$

$15,000$

$29,000$

$90,000$

$60,000$

$35,000$

$17,000$

$29,000$

$4,000$

$13,000$

$76,000$

$2,000$

$100,000$