Vandy Corporation's balance sheet and income statement appear below:
Comparative Balance Sheet |
| Ending Balance | Beginning Balance |
---|
Assets: | | |
---|
Cash and cash equivalents | $ 31 | $ 29 |
---|
Accounts receivable | 61 | 73 |
---|
Inventory | 59 | 61 |
---|
Property, plant, and equipment | 684 | 550 |
---|
Less accumulated depreciation | 349 | 319 |
---|
Total assets | $ 486 | $ 394 |
---|
Liabilities and stockholders' equity: | | |
---|
Accounts payable | $ 53 | $ 54 |
---|
Accrued liabilities | 20 | 21 |
---|
Income taxes payable | 52 | 48 |
---|
Bonds payable | 203 | 190 |
---|
Common stock | 61 | 60 |
---|
Retained earnings | 97 | 21 |
---|
Total liabilities and stockholders' equity | $ 486 | $ 394 |
---|
Income Statement |
Sales | $ 807 |
---|
Cost of goods sold | 492 |
---|
Gross margin | 315 |
---|
Selling and administrative expense | 182 |
---|
Net operating income | 133 |
---|
Gain on sale of equipment | 16 |
---|
Income before taxes | 149 |
---|
Income taxes | 45 |
---|
Net income | $ 104 |
---|
The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock.
Required:
Prepare a statement of cash flows for the year using the indirect method.
Garrison 16e Rechecks 2017-12-19