repare a statement of cashflows uusing the indirect method.    Accountants for Putterham, Inc. have assembled the following data for the year ended December 31, 2018:   2018 2017 Current Assets:      Cash $ 99,400 $ 25,000  Accounts Receivable 64,100 69,700  Merchandise Inventory 83,000 75,000 Current Liabilities:      Accounts Payable 57,600 55,200  Income Tax Payable 14,800 16,800   Transaction Data for 2018:       Issuance of common stock for cash $ 38,000 Payment of notes payable $ 46,100 Depreciation expense 24,000 Payment of cash dividends 50,000 Purchase of equipment with cash 74,000 Issuance of notes payable to borrow cash 62,000 Acquisition of land by issuing long-term notes payable 119,000 Gain on sale of building 4,500 Book value of building sold 54,000 Net income 68,500 Prepare Putterham’s statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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repare a statement of cashflows uusing the indirect method. 

 

Accountants for Putterham, Inc. have assembled the following data for the year ended December 31, 2018:

 

2018

2017

Current Assets:

 

 

 Cash

$ 99,400

$ 25,000

Accounts Receivable

64,100

69,700

 Merchandise Inventory

83,000

75,000

Current Liabilities:

 

 

 Accounts Payable

57,600

55,200

 Income Tax Payable

14,800

16,800

 

Transaction Data for 2018:

 

 

 

Issuance of common stock for cash

$ 38,000

Payment of notes payable

$ 46,100

Depreciation expense

24,000

Payment of cash dividends

50,000

Purchase of equipment with cash

74,000

Issuance of notes payable to borrow cash

62,000

Acquisition of land by issuing long-term notes payable

119,000

Gain on sale of building

4,500

Book value of building sold

54,000

Net income

68,500

Prepare Putterham’s statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.

 

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