To prepare a statement of cash flows for Golf Champion Store, you examined the companys accounts, noting

To prepare a statement of cash flows for Golf Champion Store, you examined the company’s accounts, noting the following:

Purchased equipment, $20,000, and issued a promissory note in full payment. Purchased a long-term investment for cash, $15,000.

Paid cash dividend, $12,000.

Sold equipment for $6,000 cash (cost, $21,000, accumulated depreciation, $15,000).

Issued shares of no-par stock, 500 shares at $12 cash per share.

Net income was $20,200.

Depreciation expense was $3,000.

You also created the following spreadsheet to use when preparing the statement of cash flows.

Required:
1. Complete the spreadsheet.
2. Prepare the 2013 statement of cash flows using the indirectmethod.

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Analysis of Changes Beginning Balances, December 31, 2012 Ending Balances, December 31, 2013 Debit Credit Balance Sheet Items 20,500 22,000 68,000 as Accounts Receivable Merchandise Inventory Investments Equipment Accumulated Depreciation Accounts Payable Wages Payable Income Taxes Payable Notes Payable Contributed Capital Retained Earnings 114,500 32,000 17,000 2,500 3,000 54,000 100,000 16,500 $19,200 22,000 75,000 15,000 113,500 20,000 14,000 1,500 4,500 74,000 106,000 24,700 Inflows Outflows Statement of Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Totals