Richards Inc. presented its comparative financial data and other data as follows:
Additional information:
1. Equipment was purchased for $43,200 and was paid in cash. Other equipment was sold at a $3,000 gain and was 50% depreciated at the time of sale.
2. During 2009, Richards Inc. declared and paid cash dividends.
3. Part of the investment in the stock portfolio was sold at book value. The stock is closely-held so no fair value adjustments are made.
4. Net income was $49,000.
Prepare a statement of cash flows using the indirect method for 2010. You may omit the heading.

Question

Richards Inc. presented its comparative financial data and other data as follows:
          Additional information:
1. Equipment was purchased for $43,200 and was paid in cash. Other equipment was sold at a $3,000 gain and was 50% depreciated at the time of sale.
2. During 2009, Richards Inc. declared and paid cash dividends.
3. Part of the investment in the stock portfolio was sold at book value. The stock is closely-held so no fair value adjustments are made.
4. Net income was $49,000.
Prepare a statement of cash flows using the indirect method for 2010. You may omit the heading.

Quizplus · Accepted Answer

The Answer of Richards Inc. presented its comparative financial data and other data as follows:
          Additional information:
1. Equipment was purchased for $43,200 and was paid in cash. Other equipment was sold at a $3,000 gain and was 50% depreciated at the time of sale.
2. During 2009, Richards Inc. declared and paid cash dividends.
3. Part of the investment in the stock portfolio was sold at book value. The stock is closely-held so no fair value adjustments are made.
4. Net income was $49,000.
Prepare a statement of cash flows using the indirect method for 2010. You may omit the heading.