The comparative balance sheets for Kessler Corporation appear below:
Additional information:
1. Profit for the year ending December 31, 2014 was $20,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Long-term investments in bonds that had an amortized cost of $18,000 were sold for $16,000.
Instructions
Prepare a cash flow statement for the year ended December 31, 2014, using the indirect method.

Question

The comparative balance sheets for Kessler Corporation appear below:

Additional information:
1. Profit for the year ending December 31, 2014 was $20,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Long-term investments in bonds that had an amortized cost of $18,000 were sold for $16,000.
Instructions
Prepare a cash flow statement for the year ended December 31, 2014, using the indirect method.

Quizplus · Accepted Answer

The Answer of The comparative balance sheets for Kessler Corporation appear below: Additional information: 1. Profit for the year ending December 31, 2014 was $20,000. 2. Cash dividends of $12,000 were declared and paid during the year. 3. Long-term investments in bonds that had an amortized cost of $18,000 were sold for $16,000. Instructions Prepare a cash flow statement for the year ended December 31, 2014, using the indirect method.

The Comparative Balance Sheets for Kessler Corporation Appear Below