The comparative balance sheet of Nance Company, for the current year and the preceding year ended December 31, appears below:
Current Year Preceding Year
Cash $70,000 $52,500
Accounts Receivable 83,000 90,100
Inventories 204,400 193,900
Investments -0- 50,000
Equipment 600,000 510,000
Accumulated Depreciation-Equipment (175,000) (190,000)
$782,400 $706,500
Accounts Payable $97,250 77,750
Long-Term Bonds Payable -0- 100,000
Common Stock, $20 par value 450,000 400,000
Paid-in Capital in Excess of Par Value 70,000 50,000
Retained Earnings 165,150 78,750
$782,400 $706,500
Additional data for the current year are as follows:
1. Net income is equal to $146,400.
2. Depreciation reported on the income statement is $35,000.
3. Equipment was purchased for $140,000 cash.
4. Long-Term bonds payable were paid in cash at their face amount.
5. 2,500 shares of common stock were issued at $28 per share for cash.
6. Cash dividends of $60,000 were paid in cash.
7. Investments with a cost of $50,000 were sold for $75,000 cash.
Required: Prepare a statement of cash flows using the indirect method.