Textbook Problem

Statement of cash flows—indirect method

The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows:

	Dec 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 300,600	$ 337,800
Accounts receivable (net)	704,400	609,600
inventories	918,600	865,800
Prepaid expense	18,600	26,400
Land	990,000	1,386,000
Buildings	1,980,000	990,000
Accumulated depreciation—buildings	(307,200)	(366,000)
Equipment	660,600	529,800
Accumulated depreciation—equipment	(133,200)	(162,000)
Total assets	$ 5,042,400	$4,217,400
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 594,000	$ 631,300
Income taxes payable	26,400	21,600
Bonds payable	330,000	0
Common stock, $20 par	320,000	180,000
Paid-in capital: Excess of issue price over par—common stock	950,000	8 10,000
Retained earnings	2,822,000	2,574,600
Total liabilities and stockholders' equity	$ 5,042,400	$4,217,400

The noncurrrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows:

Instructions

Prepare a statement of cash flow s, using the indirect method of presenting cash flows from operating activities.