The comparative balance sheet of Oak and Tile Flooring Co. for June 30, 2008 and 2007 is as follows:
|
|
June 30, 2008
|
June 30, 2007
|
|
Assets
|
|
|
|
Cash
|
$34,700
|
$23,500
|
|
Accounts receivable (net)
|
101,600
|
92,300
|
|
Inventories
|
146,300
|
142,100
|
|
Investments
|
0
|
50,000
|
|
Land
|
145,000
|
0
|
|
Equipment
|
215,000
|
175,000
|
|
Accumulator depreciation
|
(48,600)
|
(41,300)
|
|
|
$594,000
|
$442,100
|
|
Liabilities and Stockholders' Equity
|
|
Accounts payable (merchandise creditors)
|
$100,900
|
$95,200
|
|
Accrued expenses (operating expenses)
|
15,000
|
13,200
|
|
Dividends payable
|
12,500
|
10,000
|
|
Common stock, $1 par
|
56,000
|
50,000
|
|
Paid-in capital in excess of par-common stock
|
220,000
|
100,000
|
|
Retained earnings
|
189,600
|
173,700
|
|
|
$594,000
|
$442,100
|
The following additional information was taken from the records of Oak and The Flooring Co.
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $45,000 cash.
d. The common stock was issued for cash.
e. There was a $65,900 credit to Retailed Earnings for net income.
f. There was a $50,000 debit to Retailed Earnings for cash dividends declared.
Instructions:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.