The comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007, is as follows:
|
|
June 30, 2008
|
June 30, 2007
|
|
Assets
|
|
|
|
Cash
|
$ 34,700
|
$ 23,500
|
|
Accounts receivable (net)
|
101,600
|
92,300
|
|
Inventories
|
146,300
|
142,100
|
|
Investments
|
0
|
50,000
|
|
Land
|
145,000
|
0
|
|
Equipment
|
215,000
|
175,500
|
|
Accumulated depreciation
|
(48,600)
|
(41,300)
|
|
|
$594,000
|
$442,100
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable (merchandise creditors)
|
$100,900
|
$ 95,200
|
|
Accrued expenses (operating expenses)
|
15,000
|
13,200
|
|
Dividends payable
|
12,500
|
10,000
|
|
Common stock, $1 par
|
56,000
|
50,000
|
|
Paid-in capital in excess of par-common stock
|
220,000
|
100,000
|
|
Retained earnings
|
189,600
|
173,700
|
|
|
$594,000
|
$442,100
|
The following additional information was taken from the records of Oak and Tile Flooring Co.:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $45,000 cash.
d. The common stock was issued for cash.
e. There was a $65,900 credit to Retained Earnings for net income.
f. There was a $50,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.