The following information is from the accounting records of Wescott Office Supplies, Inc., for the fiscal years 2011 and 2010:

	2011	2010
Assets
Cash	$ 66,250	$ 61,000
Accounts receivable, net	84,000	42,000
Merchandise inventory	42,000	48,250
Prepaid expenses	7,875	12,125
Land	94,500	78,750
Buildings	199,500	147,000
Accumulated depreciation – buildings	(31,500)	(26,250)
Equipment	257,250	210,000
Accumulated depreciation- equipment	(78,750)	(63,000)
Total assets	$641,125	$509,875
Liabilities and stockholders’ equity
Accounts payable	$73,500	$ 47,250
Accrued liabilities payable	50,500	55,750
Five-year note payable	52,500	-0-
Capital stock -$50 par	420,000	367,500
Retained earnings		39,375
Total liabilities and stockholders’ equity	$641,125	$509,875

Net income for year ended 2011 June 30, was $ 56,250.

Additional land was acquired for cash, $ 15,750.

No equipment or building retirements occurred during the year.

Equipment was purchased for cash, $ 47,250.

The five-year note for $ 52,500 was issued to pay for a building erected on land leased by the company.

Stock was issued at par for cash, $ 52,500.

Dividends declared and paid were $ 51,000.

The company paid interest of $ 10,000 and income taxes of $ 40,000.

1. Prepare a working paper for a statement of cash flows.

2. Prepare a statement of cash flows under the indirect method. Also prepare any necessary supplemental schedule(s).

Answer rating: 100% (QA)

Westcott Office Supplies Inc Statement of Cash Flows for the Year Ended June 302011 Cash flow from o... View the full answer