Question: On the basis of the following data for Conglomerate, Inc. prepare a statement of cash flows for the year ended December 31, 2015, using the indirect method of presenting cash flows from operating activities.
|
Dec. 31, 2015 |
Dec. 31, 2014 |
| Assets |
|
|
| Cash |
$486 |
$158 |
| Accounts Receivable (net) |
280 |
195 |
| Inventories |
172 |
110 |
| Land |
400 |
453 |
| Equipment |
223 |
172 |
| Accumulated depreciation - equipment |
(60) |
(27) |
| Total assets |
$1,501 |
$1,061 |
|
|
|
| Liabilities and Shareholders Equity |
|
|
| Accounts payable |
$180 |
$161 |
| Dividends payable |
32 |
0 |
| Common stock, $10 par |
105 |
45 |
| Additional paid-in capital |
247 |
121 |
| Retained earnings |
937 |
734 |
| Total liabilities and Shareholders Equity |
$1,501 |
$1,061 |
In addition: 1. Land was sold for $120 in the year ended December 31, 2015.
2. Equipment was acquired for cash in the year ended December 31, 2015.
3. There were no disposals of equipment during the year ended December 31, 2015.
4. The common stock issued during the year ended December 31, 2015, was issued for cash.
5. There was a $299 credit to Retained earnings for net income for the year ended December 31, 2015.
6. There was a $96 debit to Retained Earnings for cash dividends declared for the year ended December 31, 2015 (note; not all dividends declared were paid during the year).