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The comparative balance sheet of Nelson Company, f...

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The comparative balance sheet of Nelson Company, for 2008 and the preceding year ended December 31, 2007, appears below in condensed form: Year Year 2008 2007 Cash $ 68,000 $ 42,500 Accounts receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments ..... 100,000 Equipment 515,000 425,000 Accumulated depreciation-equipment (153,000) (175,000) $612,000 $567,700 Accounts payable $ 59,750 $ 47,250 Bonds payable, due 2010 ..... 75,000 Common stock, $20 par 375,000 325,000 Premium on common stock 50,000 25,000 Retained earnings 127,250 95,450 $612,000 $567,700 Additional data for the current year are as follows: (a) Net income, $71,800. (b) Depreciation reported on income statement, $38,000. (c) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. (d) Bonds payable for $75,000 were retired by payment at their face amount. (e) 2,500 shares of common stock were issued at $30 for cash. (f) Cash dividends declared and paid, $40,000. (g) Investments of $100,000 were sold for $125,000. Prepare a statement of cash flows using the indirect method.

 

Paper#5762 | Written in 18-Jul-2015

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