Question Details

Prepare Sally's statement of cash flows 



Ex. 1
The following information is available for Sally Corporation for the year ended December 31, 2014:

	Collection of principal on long-term loan to a supplier	$15,000
	Acquisition of equipment for cash	10,000
	Proceeds from the sale of long-term investment at book value	20,000
	Issuance of common stock for cash	27,000
	Depreciation expense	28,000
	Redemption of bonds payable at carrying (book) value	35,000
	Payment of cash dividends	15,000
	Net income	25,000
	Purchase of land by issuing bonds payable	45,000

In addition, the following information is available from the comparative balance sheet for Sally at the end of 2013 and 2014:

	    2014		    2013	
	Cash	$  66,000	$14,000
	Accounts receivable (net)	20,000	16,000
	Prepaid insurance	    18,000	  13,000
	Total current assets	$104,000	$43,000

	Accounts payable	$  30,000	$20,000
	Salaries payable	      3,000	    7,000
	Total current liabilities	$  33,000	$27,000

Instructions
Prepare Sally's statement of cash flows for the year ended December 31, 2012 using the indirect method.



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