The comparative balance sheet of Southern Bell Company at March 31, 20X9, reportedthe followingCurrent Assets:31 /3/20X$4,00031/3/X9$6,200Cash and cash equivalentsAccounts receivable21,70060,60014,900Inventories63,200Current Liabilities:$27,600$30,100Accounts payableAccrued liabilities11,10010,700Income taxes payable4,7008,000Southern Bell's transactions during the year ended March 31, 20X9 included the following:Payment of cash dividendPurchase of equipment$30,00078,700Issuance of long-term note payable to borrow cashDepreciation expensePurchase of building50,00017,30047,000Net income70,000Issuance of common stock11,00095,000Acquisition of land by issuing L-T Note PayableRequired:Prepare Southern Bell's statement of cash flows for the year ended March 31, 20 X 9, using theindirect method.

A cash flow statement is a most important financial report that represents a firm's liquidity…

Answered: The comparative balance sheet of…

Cornerstones of Financial Accounting

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ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

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The comparative balance sheet of Southern Bell Company at March 31, 20X9, reported
the following
Current Assets:
31 /3/20X
$4,000
31/3/X9
$6,200
Cash and cash equivalents
Accounts receivable
21,700
60,600
14,900
Inventories
63,200
Current Liabilities:
$27,600
$30,100
Accounts payable
Accrued liabilities
11,100
10,700
Income taxes payable
4,700
8,000
Southern Bell's transactions during the year ended March 31, 20X9 included the following:
Payment of cash dividend
Purchase of equipment
$30,000
78,700
Issuance of long-term note payable to borrow cash
Depreciation expense
Purchase of building
50,000
17,300
47,000
Net income
70,000
Issuance of common stock
11,000
95,000
Acquisition of land by issuing L-T Note Payable
Required:
Prepare Southern Bell's statement of cash flows for the year ended March 31, 20 X 9, using the
indirect method.

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Question 5
The Income Statement and additional data of Crawford Properties, Inc., follows:
CRAWFORD PROPERTIES Inc.
Income Statement
For Year Ended June 30, 20X6
Revenues:
Sales revenue $237,000
Expenses:
Cost of goods sold $103,000
Salary expense 58,000
Depreciation expense 29,000
Income taxes expense 9,000 199,000
Net Income $38,000
Additional data:
a) Acquisition of plant assets is $116,000. Of this amount $101,000 is paid in cash and
$15,000 by signing a note payable.
b) Proceeds from sale of land total $24,000
c) Proceeds from issuance of common stock total $30,000
d) Payment of long-term note payable is $15,000
e) Payment of dividends is $11,000
f) From the balance sheet
30/6/X 6 30/6/X 5
Current Assets:
Cash & cash equivalents $27,000 $20,000
Accounts receivable 43,000 58,000
Inventories 92,000 85,000
Current Liabilities:
Accounts payable $35,000 $22,000
Accrued liabilities 13,000 21,000
Required:
Prepare Crawford Properties, Inc.’s statement of cash flows for the year ended
June 30, 20X6, using the indirect method?

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