Textbook Problem

The following balance sheets and income statement were taken from the records of Rosie-Lee Company:

Additional transactions were as follows:

1. a. Sold equipment costing $21,600, with accumulated depreciation of $16,200, for $3,600.
2. b. Issued bonds for $90,000 on December 31.
3. c. Paid cash dividends of $36,000.
4. d. Retired mortgage of $108,000 on December 31.

Required:

Prepare a statement of cash flows using a worksheet similar to the one shown in Example 14.8 (p. 804). Use the indirect method to prepare the statement.