Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 5

PROBLEM DATA
The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows:

Additional data obtained from the records of Prime Sports Gear are as follows:
a. Net income for 2013 was $121,610.
b. Depreciation reported on income statement for 2013 was $46,500.
c. Purchased $165,000 of new equipment, putting $90,000 cash down and issuing $75,000 of bonds for the balance.
d. Old equipment originally costing $19,500, with accumulated depreciation of $7,950, was sold for $8,000.
e. Retired $60,000 of bonds.
f. Declared cash dividends of $64,000.
g. Issued 1,500 shares of common stock at $27 cash per share.
REQUIREMENT
In the space provided on the next page, prepare a statement of cash flows in good form using the indirect method. Use the format shown in your textbook.