Question

how do I prepare the statement of cash flows using the indirect method for this problem (P13-9B in the book)? I wasn't sure if you already had the textbook so I typed the problem out below. Any help on how to do the indirect method for this problem would be greatly appreciated!!!

Minnie Hoover Company Comparative Balance Sheets December 31st

ASSETS	2014	2013
Cash	93600	33400
Accounts Receivable	63200	37000
Inventory	124500	102650
Investments	79500	107000
Plant Assets	318000	205000
Accumulated Depreciation	(44000)	(40000)
TOTAL.	$634800	$445050
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts Payable	56600	48280
Accrued Expenses Payable	15100	18830
Bonds Payable	140000	70000
Common Stock	250000	200000
Retained Earnings	173100	107940
TOTAL.	$634800	$445050

MINNIE HOOPER COMPANY INCOME STATEMENT FOR THE YEAR ENDING 12-31-2014

Sales Revenue		$297500
LESS:
Cost of Goods Sold	99460
Operating Expenses, excluding depreciation expense	19670
Depreciation Expense	25000
Loss on Disposal of Plant Assets	5000
Income Taxes	37270
Interest Expense	2940	189340
Net Income		$108160

Additional Information.

1. New plant assets costing $149000 were purchased for cash during the year.

2. Investments were sold at cost.

3. Plant assets costing $36000 were sold for $10000, resulting in a loss of $5000.

4. A cash dividend of $43000 was declared and paid during the year.

Answer 1

Minnie Hoover Company
Statement of Cash Flows
For the year ended December 31, 2014
	$	$
Cash Flows from Operating Activities
Net Income		108,160
Adjustments to reconcile net income to net cash flows from operations
Depreciation Expense	25,000
Lost on Disposal of Plant Assets	5,000
Interest Expense	2,940
Increase in Accounts Receivable	(26,200)
Increase in Inventory	(21,850)
Increase in Accounts Payable	8,320
Decrease in Accrued Expenses Payable	(3,730)	(10,520)
Net cash flows from Operating Activities		97,640
Cash Flows from Investing Activities
Cash from sale of Plant Assets	10,000
Cash from sale of Investments	27,500
Cash paid for purchase of plant assets	(149,000)
Net cash used in Investing Activities		(111,500)
Cash flows from Financing Activities
Cash from issuance of Common Stock	50,000
Cash from issuance of Bonds Payable	70,000
Cash dividends paid	(43,000)
Interest paid	(2,940)
Net cash flows from Financing Activities		74,060
Net increase in Cash		60,200
Beginning cash balance		33,400
Ending cash balance		93,600