Question - The followings are accounting items taken from the records of the Biden Company for 2012:
|
Payment of dividends to stockholders
|
$48,000
|
|
Decrease in accounts payable
|
$38,000
|
|
Decrease in accounts receivable
|
$42,000
|
|
Increase in inventories
|
$12,000
|
|
Increase in salaries payable
|
$36,000
|
|
Net income for 2012
|
$84,000
|
|
Payment for purchase of land and buildings
|
$120,000
|
|
Payment for long-term notes payable (principal amount: 40,000; interest payment: 4,000)
|
$44,000
|
|
Issuance of ten-year bonds payable at par value
|
$40,000
|
|
Depreciation expense
|
$20,000
|
|
Proceeds from sale of patents
|
$54,000
|
Purchase equipment by issuing long-term notes
|
$36,000 |
| Cash (at the beginning of 2012) |
$300,000
|
Required: Prepare the statement of cash flows for Biden Company for 2012 using the indirect method.