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Financial Information for Princeton Company at December 31,2014,and for the Year

Question 68

Essay

Financial information for Princeton Company at December 31,2014,and for the year then ended,are presented below:
Financial information for Princeton Company at December 31,2014,and for the year then ended,are presented below:     Additional information: 1.Wrote off $500 accounts receivable as uncollectible. 2.Sold an operational asset for $4,000 cash (cost,$15,000,accumulated depreciation,$9,000). 3.Issued common stock for $5,000 cash. 4.Declared and paid a cash dividend of $5,000. 5.Purchased land for $20,000 cash. 6.Acquired land for $21,000,and issued common stock as payment in full. 7.Acquired operational assets,cost $16,000; issued a $16,000,three-year,interest-bearing note payable. 8.Paid a $10,000 long-term note installment by issuing common stock to the creditor. 9.Borrowed cash on a long-term note,$20,000. Required: Prepare the statement of cash flows using the indirect method.
Additional information:
1.Wrote off $500 accounts receivable as uncollectible.
2.Sold an operational asset for $4,000 cash (cost,$15,000,accumulated depreciation,$9,000).
3.Issued common stock for $5,000 cash.
4.Declared and paid a cash dividend of $5,000.
5.Purchased land for $20,000 cash.
6.Acquired land for $21,000,and issued common stock as payment in full.
7.Acquired operational assets,cost $16,000; issued a $16,000,three-year,interest-bearing note payable.
8.Paid a $10,000 long-term note installment by issuing common stock to the creditor.
9.Borrowed cash on a long-term note,$20,000.
Required:
Prepare the statement of cash flows using the indirect method.

Correct Answer:

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