Burns Company's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below:
|
Increases
(Decreases)
|
|
Debit balances:
|
|
|
Cash
|
$19,000
|
|
Accounts receivable
|
$13,000
|
|
Inventory
|
$(16,000)
|
|
Prepaid expenses
|
$4,000
|
|
Long-term investments
|
$10,000
|
|
Plant and equipment
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$70,000
|
|
Credit balances:
|
|
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Accumulated depreciation
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$31,000
|
|
Accounts payable
|
$(18,000)
|
|
Accrued liabilities
|
$16,000
|
|
Taxes payable
|
$(4,000)
|
|
Bonds payable
|
$(60,000)
|
|
Deferred taxes
|
$8,000
|
|
Common stock
|
$40,000
|
|
Retained earnings
|
$87,000
|
The company declared and paidcash dividends of $4,000 last year.
Required:
a. Construct in good form the operating activities section ofthe company's statement of cash flows for the year. (Use the indirect method.)
b. Construct in good form the investing activities section of the company's statement of cash flows for the year.
c. Construct in good form the financing activities section of the company's statement of cash flows for the year.