he Hossain Corporation reported the following balance sheet data for $20$X$4$ and $20$X$3$:

$20$X$420$X$3$

Cash $ $94,025$ $ $31,955$

Available$-$for$-$sale debt securities $($not cash equivalents$)23,000100,000$

Accounts receivable $95,00081,750$

Inventory $180,000158,500$

Prepaid insurance $2,8503,500$

Land, buildings, and equipment $1,280,0001,140,000$

Accumulated depreciation $(625,000)(587,000)$

Total assets $ $1,049,875$ $ $928,705$

Accounts payable $ $89,840$ $ $163,670$

Salaries payable $26,00032,000$

Notes payable $($current$)38,50090,000$

Bonds payable $215,0000$

Common stock $300,000300,000$

Retained earnings $380,535343,035$

Total liabilities and shareholders' equity $ $1,049,875$ $ $928,705$

Additional information for $20$X$4$:

$(1)$ Within the year $($before year end$),$ sold available$-$for$-$sale debt securities costing $$77,000$ for $$83,000.$

$(2)$ Equipment costing $$20,000$ with a book value of $$6,500$ was sold for $$8,250.$

$(3)$ Issued $6\%$ bonds payable at face value, meaning that the corporation received exactly $$215,000.$

$(4)$ Purchased new equipment for $$160,000$ cash.

$(5)$ Paid cash dividends of $$27,500.$

$(6)$ Net income was $$65,000.$

Required:

Prepare a statement of cash flows for $20$X$4$ in good form using the indirect method for cash flows from operating activities.

Note: Amounts to be deducted should be indicated with a minus sign.

Answer rating: 100% (QA)

To prepare the statement of cash flows for Hossain Corporation for the year 20X4 we need to analyze ... View the full answer