On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method.
Assume that equipment costing $25.000 was purchased for cash and no long term assets were told during the period.
- Stock was issued for cash- 3, 200 shares at par.
- Net income for the current year was $76,000
- Cash dividends declared and paid were $13.000.
Current Year Prior YearCash $170,000 $74,000Accounts receivable (net) 78,000 85,000Inventories 106,500 90,000Equipment 395,000 370,000Accumulated depreciation (195,000) (158,000)Accounts payable (merchandise creditors) $51,000 $50,000Taxes payable|2,500|5,000Common stock, $10 par 262,000 230,000Retained earnings 239,000 176,000$554,500 $461,000