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InnovationInnovation Corporation is preparing its statement of cash flows for the past year. The company has...

InnovationInnovation

Corporation is preparing its statement of cash flows for the past year. The company has gathered the following information about the past year just ended on December 31.

Retire bond payable (long-term). . . . . . .

$10,000

Decrease in accounts receivable. . . . . . . . . . .

$11,000

Paid dividends in cash. . . . . . . . . . . . .

$28,000

Increase in salaries payable. . . . . . . . . . . . . . . .

$9,000

Decrease in inventory. . . . . . . . . . . . . .

$6,000

Depreciation expense. . . . . . . . . . . . . . . . . . . .

$17,000

Decrease in accounts payable. . . . . . . .

$7,000

Increase in prepaid insurance. . . . . . . . . . . . . .

$600

Sold land (investment). . . . . . . . . . . . .

$23,000

Decrease in other short-term liabilities. . . . . . . .

$3,000

Increase in interest payable. . . . . . . . .

$400

Increase in taxes payable. . . . . . . . . . . . . . . . .

$4,000

Cash balance, beginning of year. . . . . .

$89,000

Purchase of new computer system with cash. . . .

$18,000

Net income. . . . . . . . . . . . . . . . . . . . .

$85,000

Requirement

Prepare a statement of cash flows for the past year using the indirect method.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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