Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 20

Statement of cash flows-indirect method
The comparative balance sheet of Harris Industries Inc. at December 31, 2016 and 2015, is as follows:

An examination of the income statement and the accounting records revealed the following additional information applicable to 2016:
a. Net income, $524,580.
b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
c. Patent amortization reported on the income statement, $5,040.
d. A building was constructed for $579,600.
e. A mortgage note for $224,000 was issued for cash.
f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
g. Cash dividends declared, $131,040.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.