Indirect Method Preparing a Statement of Cash Flows

Kidman Corp. reported the following financial statements.

Balance Sheet, December 31	Prior Year	Current Year	Difference
Cash and cash equivalents	$24,000	$62,000	$38,000
Accounts receivable	19,000	15,000	(4,000)
Merchandise inventory	31,000	59,000	28,000
Land	20,000	4,000	(16,000)
Equipment	48,000	72,000	24,000
Accumulated depreciation	(12,000)	(24,000)	(12,000)
Total assets	$130,000	$188,000	$58,000
Accounts payable	$16,000	$18,000	$2,000
Notes payable, long-term	7,000	2,000	(5,000)
Bonds payable	-	30,000	30,000
Common stock (no-par)	80,000	92,000	12,000
Retained earnings	27,000	46,000	19,000
Total liabilities and stockholders' equity	$130,000	$188,000	$58,000

Income Statement
For the Current Year Ended December 31
Revenues	$152,000
Cost of goods sold	82,000
Depreciation	12,000
Other expenses	14,000
Loss on sale of land	10,000
Net income	$34,000

Prepare the statement of cash flows for the current year ended December 31, using the indirect method to present cash flows from operating activities.

Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Indirect Method Preparing a Statement of Cash Flows

Kidman Corp. reported the following financial statements.

Balance Sheet, December 31	Prior Year	Current Year	Difference
Cash and cash equivalents	$24,000	$62,000	$38,000
Accounts receivable	19,000	15,000	(4,000)
Merchandise inventory	31,000	59,000	28,000
Land	20,000	4,000	(16,000)
Equipment	48,000	72,000	24,000
Accumulated depreciation	(12,000)	(24,000)	(12,000)
Total assets	$130,000	$188,000	$58,000
Accounts payable	$16,000	$18,000	$2,000
Notes payable, long-term	7,000	2,000	(5,000)
Bonds payable	-	30,000	30,000
Common stock (no-par)	80,000	92,000	12,000
Retained earnings	27,000	46,000	19,000
Total liabilities and stockholders' equity	$130,000	$188,000	$58,000

Income Statement
For the Current Year Ended December 31
Revenues	$152,000
Cost of goods sold	82,000
Depreciation	12,000
Other expenses	14,000
Loss on sale of land	10,000
Net income	$34,000

Prepare the statement of cash flows for the current year ended December 31, using the indirect method to present cash flows from operating activities.

Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.