Part E: Preparing Statement of Cash Flows

Part E: Preparing Statement of Cash Flows

Boscia Corporation’s balance sheet appears below:

Comparative Balance Sheet

Ending Balance

Beginning Balance  Assets:    Cash and cash equivalents …………………….  $ 44 $ 38  Accounts receivable …………………………….  82 69  Inventory ……………………………………………  71 69  Plant and equipment …………………………….  537 500  Accumulated depreciation …………………….  ( 240) ( 201)  Total assets …………………………………………  $494 $475      Liabilities and stockholders’ equity:    Accounts payable ………………………………..  $ 70 $ 60  Wages payable …………………………………….  24 21  Taxes payable ……………………………………..  19 22  Bonds payable …………………………………….  226 300  Deferred taxes ……………………………………..  19 18  Common stock …………………………………….  22 20  Retained earnings ………………………………..   114     34  Total liabilities and stockholders’ equity ..  $494 $475

The net income for the year was $108. Cash dividends were $28.

Required:

Prepare a statement of cash flows in good form using the indirect method