How would this problem be done?
2008 2007
Assets
Cash $ 36000 31000
Accounts receivable (net) 80000 60000
Prepaid Insurance 25000 17000
Land 18000 40000
Equipment 70000 60000
Accumulated Depreciation (20000) (13000)
Total Assets 209000 195000
Liabilities and Stockholder’s Equity
Accounts Payable 11000 6000
Bonds Payable 27000 19000
Common Stock 140000 115000
Retained Earnings 31000 55000
Total Liabilities and Stockholder’s equity 209000 195000
Additional information:
1. Net loss for 2008 is $15,000.
2. Cash dividends of $9,000 were declared and paid in 2008.
3. Land was sold for cash at a loss of $7,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $12,000 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was
$25,000.
Instructions
Prepare a statement of cash flows for the year ended 2008, using the indirect method
