Current Attempt in Progress
Comparative balance sheets for Flint Company are as follows:
Flint Company
Comparative Balance Sheets
December 31
Assets
Cash
Accounts receivable
Inventory
Land
Equipment
Accumulated depreciation-equipment
Total
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock ($1 par)
Retained earnings
Total
Additional information:
1. Net income for 2004 was $245,000.
2. Cash dividends of $140,000 were declared and paid.
3. Bonds payable with a carrying value of $11,000 were redeemed for $11,000 cash.
4. Common stock was issued for $12,000 cash.
5. Depreciation expense was $32,000.
6. Land was sold for cash; the gain was $10,000.
7. Sales revenue was $1,200,000.
8. Purchases were $700,000.
9. Equipment was sold for $20,000 cash. The equipment had a book value of $10,000.
Prepare a statement of cash flows for 2004 using the indirect method. Note the reconciling items clearly on the work sheet. Show amounts that decrease cash flow with a sign (e.g., -1,000) or a parenthesis (e.g., (1,000)).
FLINT COMPANY
Worksheet-Statement of Cash Flows
Balance
12/31/04
Balance Sheet Accounts
Debits
Credits
Balance
12/31/05
Statement of Cash Flow Effects
Operating activities
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Investing activities
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Financing activities
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Total
Total
