Question: how do you do this?? Part Three - Statement of Cash Flows (indirect method) Ignoring all of the previous information, use the information provided below
Part Three - Statement of Cash Flows (indirect method) Ignoring all of the previous information, use the information provided below to prepare a Statement of Cash Flows using the indirect method. Connie Clothes, Inc. Comparative Balance Sheet December 31, 2019 and 2018 Assets 2019 Cash 100,000 Accounts receivable (net) 78,000 Inventories 101,500 Machinery and equipment 410,000 Accumulated depreciation-machinery & equipment (150,000) Total assets 539,500 2018 78,000 85,000 90,000 370,000 (158,000) 465,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $10 par Excess of issue price over par - common stock Retained earnings Total liabilities and stockholders' equity 58,500 5,000 200,000 62,000 214,000 539,500 55,000 4,000 170,000 60,000 176,000 465,000 Additional information: 1. Equipment costing $125,000 was purchased for cash. 2. Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. 3. The stock was issued for cash. 4. The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000. Prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities
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