Piper Company Comparative Balance Sheets 31-Dec
Assets: 2021 2020
Cash $19,000 $32,000
Accounts receivable 24,000 14,000
Inventory 45,000 25,000
Equipment $70,000 $78,000
Accumulated Depreciation (27,000) 43,000
(24,000) 54,000
Total $131,000 $125,000
Liabilities and Stockholders' Equit
Accounts payable $30,000 43,000
Income Taxes payable 25,000 20,000
Bonds payable 20,000 10,000
Common stock 25,000 25,000
Retained earnings 33,000 28,000
Total Liab. And SE equity 133,000 126,000
Additional information:
1. Net Income for 2018 is $25,000.
2. Cash dividends of $20,000 were declared and paid in 2018.
3. Depreciation Expense for 2018 is $5,000.
4. Equipment with a cost of $15,000 and a book value of $12,000 was sold for $12,000 cash (no gain or loss on sale).
5. $10,000 of bonds were issued during the year.
6. Additional Equipment was purchased for $6,000 cash.
Instructions:
Prepare a statement of cash flows for the year ended 2018, using the indirect method.