Question

STATEMENT OF CASH FLOWS The Crew, Inc. Consolidated Balance Sheets (in thousands) Dec. 31, Year 2 Dec. 31, Year 1 ASSETS Current assets: Cash and cash equivalents $ 92,069 $ 72,634 Accounts receivables, net 55,947 75,492 Inventories 50,784 53,129 Prepaid expenses 12,112 13,057 Total current assets 210,912 214,312 Equipment 145,444 134,312 Less: Accumulated depreciation (50,515) (36,689) Total assets $305,841 $311,935 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,466 $ 34,879 Accrued liabilities 40,574 40,722 Total current liabilities 66,040 75,601 Long-term debt 10,422 10,206 Stockholders’ equity: Contributed capital 1,662 1,284 Retained earnings 227,717 224,844 Total stockholders’ equity 229,379 226,128 Total liabilities and stockholders’ equity $305,841 $311,935 Consolidated Statement of Income Year 2 Net sales $130,896 Cost of sales 74,040 Gross profit 56,856 Operating expenses: Selling, general & administrative expenses 33,211 Depreciation expense 13,826 Total operating expenses 47,037 Operating income 9,819 Interest income 239 Income before income taxes 10,058 Income tax expense 3,621 Net income $ 6,437 Additional Information: See below. The Crew, Inc. did not sell any equipment but purchased equipment in the amount of $11,132. The company issued debt in the amount of $216 and did no repay any borrowings during the year ended December 31, Year 2. The company declared and paid dividends in the amount of $3,564 during the year ended December 31, Year 2. Also, the company issued stock in the amount of $378. Using the information provided above, prepare a statement of cash flows using the indirect method.

Answer 1