Problem
Flores Corporation uses the indirect method to prepare the operating activities section of its statement of cash flows. The following is a partial list of the company's account balances:
|
Title
|
End of Year 2
|
End of Year 1
|
|
Land
|
$ 65,900
|
$ 2,400
|
|
Accounts receivable
|
10,000
|
10,400
|
|
Prepaid rent
|
1,400
|
2,050
|
|
Prepaid insurance
|
2,800
|
900
|
|
Equipment
|
14,500
|
12,000
|
|
Accounts payable
|
1,400
|
1,800
|
|
Utilities payable
|
800
|
500
|
|
Cash
|
7,200
|
8,000
|
|
Buildings
|
112,000
|
94,000
|
|
Salaries payable
|
2,200
|
2,900
|
|
Unearned revenue
|
900
|
800
|
Additional information:
Net income for Year 2 was $36,900, depreciation expense was $26,700, and equipment with a book value of $20,000 was sold for $18,000 cash.
Task
Prepare the operating activities section of the statement of cash flows for Year 2.