On the basis of the following data for Larson Co.for the year ending December 31 Year 2,and the preceding year ended December 31 Year 1,prepare a statement of cash flows.Use the indirect method of reporting cash flows from operating activities.In addition to the balance sheet data,assume that:
Equipment costing $125,000 was purchased for cash.
Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
The stock was issued for cash.

The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

Question

On the basis of the following data for Larson Co.for the year ending December 31 Year 2,and the preceding year ended December 31 Year 1,prepare a statement of cash flows.Use the indirect method of reporting cash flows from operating activities.In addition to the balance sheet data,assume that:
Equipment costing $125,000 was purchased for cash.
Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
The stock was issued for cash.
​
The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
​

Quizplus · Accepted Answer

The Answer of On the basis of the following data for Larson Co.for the year ending December 31 Year 2,and the preceding year ended December 31 Year 1,prepare a statement of cash flows.Use the indirect method of reporting cash flows from operating activities.In addition to the balance sheet data,assume that:
Equipment costing $125,000 was purchased for cash.
Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
The stock was issued for cash.
​
The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
​

On the Basis of the Following Data for Larson Co