The comparative balance sheet of Iglesias Inc. as of December 31, 20Y3 and 20Y2, is shown below:

1		December 31, 20Y3	December 31, 20Y2
2	Assets
3	Money	$186,000.00	$180,000.00
4	Accounts receivable (net)	540,000.00	480,000.00
5	inventories	924,000.00	900,000.00
6	Investments	0.00	120,000.00
7	Tierra	600,000.00	0.00
8	Equipment	1,680,000.00	1,440,000.00
9	Accumulated Depreciation-Equipment	(720,000.00)	(600,000.00)
10	total assets	$3,210,000.00	$2,520,000.00
11	Liabilities and Equity
12	Accounts payable	$408,000.00	$360,000.00
13	Accumulated charges to pay	54,000.00	60,000.00
14	payable dividends	36,000.00	30,000.00
15	Common shares, $4 a par	840,000.00	720,000.00
sixteen	Excess paid-in capital over par	240,000.00	210,000.00
17	Retained earnings	1,632,000.00	1,140,000.00
18	Total liabilities and stockholders' equity	$3,210,000.00	$2,520,000.00

Additional data obtained from an examination of the general ledger accounts for 20Y3 are as follows:

a.	The investments were sold for $210,000 cash.
b.	Equipment and land were purchased for cash.
C.	There were no equipment disposals during the year.
d.	Common shares were issued in cash.
mi.	There was a $600,000 credit to Retained Earnings for net income.
F.	There was a debit of $108,000 to retained earnings for declared cash dividends.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the declaration header. Please refer to the provided list of labels and quantity descriptions for the exact wording of the answer choices for the text entries. Use the minus sign to indicate cash outflows, cash decreases, and a net cash outflow for each section, if necessary.

Answer rating: 100% (QA)

Iglesias Inc Statement of Cash Flows For the Year Ended December 31 20Y3 Indirect Method Note The ne... View the full answer