1.) Prepare a statement of cash flows using the indirect method for the year ending December 31, 2011.
|Accounts receivable (net)||31,000||35,000|
|Buildings, and equipment||400,000||360,000|
|Less: accumulated depreciation||(100,000)||(75,000)|
|Note payable, Short Term||20,000||60,000|
|Note payable, Long Term||20,000||15,500|
|Total liabilities and equities||$419,000||$412,000|
One piece of equipment was purchased during the year.
Short term debt was repaid while long term debt was issued.
Dividends were paid during the year.
A condensed income statement for the year is as follows:
|Cost of goods sold||220,000|
|Operating expenses, other||138,000|