Statement of Cash Flows-Indirect Method
The following information was obtained from analysis of selected accounts of Orlando Company for the year ended December 31, 2008.
|
Increase in long-term debt
|
$ 57,000
|
|
Purchase of treasury stock
|
52,000
|
|
Depreciation and amortization
|
197,000
|
|
Gain on sale of equipment (included in net income)
|
6,000
|
|
Proceeds from issuance of common stock
|
184,000
|
|
Purchase of equipment
|
434,000
|
|
Proceeds from sale of equipment
|
20,000
|
|
Payment of dividends
|
49,000
|
|
Net income
|
375,000
|
|
Increase (decrease) in working capital accounts:
|
|
|
Cash
|
$ 45,000
|
|
Accounts receivable
|
229,000
|
|
Inventories
|
275,000
|
|
Trade notes payable
|
167,000
|
|
Accounts payable
|
124,000
|
|
Income taxes payable
|
(34,000)
|
|
Cash balance, January 1, 2008
|
120,000
|
Instructions: From the information given, prepare a statement of cash flows using the indirect method.