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A comparative balance sheet for Rocker Company appears below:
ROCKER COMPANY
Comparative Balance Sheet
Dec. 31, 2012 Dec. 31, 2011
Assets
Cash $ 33,000 $10,000
Accounts receivable 18,000 14,000
Inventory 25,000 18,000
Prepaid expenses 6,000 9,000
Long-term investments -0- 18,000
Equipment 60,000 32,000
Accumulated depreciationequipment (20,000) (14,000)
Total assets $122,000 $87,000
Liabilities and Stockholders' Equity
Accounts payable $ 17,000 $ 7,000
Bonds payable 37,000 47,000
Common stock 40,000 23,000
Retained earnings 28,000 10,000
Total liabilities and stockholders' equity $122,000 $87,000
Additional information:
1. Net income for the year ending December 31, 2012 was $33,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $18,000 were sold for $14,000.
4. Sales for 2012 were $120,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2012, using the indirect method. (20 Points)
Answer & Explanation
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