Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 1

Statement of cash flows-indirect method
The comparative balance sheet of Charles Inc. for December 31, 2014 and 2013, is shown as follows:

Additional data obtained from an examination of the accounts in the ledger for 2014 are as follows:
a. The investments were sold for $210,000 cash.
b. Equipment and land were acquired for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $190,280 credit to Retained Earnings for net income.
f. There was a $72,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.