Indirect Method - Cash flow statement

Sean Seymour Company

Comparative balance sheet - December 31

Assets: 20x2 20x1

Cash $26,000 $13,000

Accounts receivable 18,000 14,000

Inventories 38,000 35,000

Property, Plant & Equip. 70,000 78,000

Accumulated depreciation ( 30,000) ( 24,000)

122,000 116,000

Liabilities & Stockholders

Equity:

Accounts payable 29,000 33,000

Income taxes payable 15,000 20,000

Bonds payable 20,000 10,000

Common stock 25,000 25,000

Retained earnings 33,000 28,000

122,000 116,000

Sean Seymour Co.

Income statement for the year ended 12/31/x2

Sales $240,000

Less:

COGS 180,000

Selling 28,000

Admin expenses 6,000

Income taxes 7,000

Interest expense 2,000 223,000

Net Income 17,000

Dividends of $12,000 were declared and paid

During the year, equipment was sold for $10,000 cash. This equipment

cost $15,000 originally & had accumulated depreciation of $5,000 at the time of

sale.

All depreciation expense, $11,000, is in the selling expense category

All sales and purchases are on account

Additional equipment was purchased for $7,000 cash

Required: Prepare a statement of cash flows using the indirect method

	Balance		Reconciling Items 20xx			Balance	Check Balance
Debits	12/31/20xx		Debits		Credits	12/31/20xx	12/31/20xx
Cash									Sean Seymour
Accounts receivable									Cash Flow Statement
Inventory									12/31/20xx
Plant Assets
									Operating Activities:
Credits
Accumulated Depreciation
Accounts payable
Income taxes payable
Bonds payable
Capital stock
Retained earnings									Cash Provided by (Used in) Operating Activities
	-					-			Investing Activities:
Statement of Cash Flow Effects
Operating activities
									Cash Provided by (Used in) Investing Activities
									Financing Activities:
Investing activities									Cash Provided by (Used in) Financing Activities
									Net increase/(decrease) in cash
									Beginning Cash
Financing activities									Ending Cash
Change in cash
Totals			-		-