| 1. | Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities. | | December 31, | | | | | | 2012 | 2011 | | | | Current Accounts: | | | | | | | Current assets: | | | | | | | Cash and cash equivalents. . . . . . | $92,100 | $17,000 | | | | Accounts receivable. . . . . . . . . . . | 64,500 | 69,200 | | | | Inventories. . . . . . . . . . . . . . . . . . | 87,000 | 80,000 | | | | Current liabilities: | | | | | | | Accounts payable. . . . . . . . . . . . . | 57,900 | 56,200 | | | | Income tax payable. . . . . . . . . . . . | 14,400 | 17,100 | | | Transaction Data for 2012: | | | | | | | Issuance of common stock | | Payment of note payable. . . . . . | $48,100 | | | for cash. . . . . . . . . . . . . . | $40,000 | Payment of cash dividends. . . . . | 54,000 | | Depreciation expense. . . . . . . . . . | 25,000 | Issuance of note payable | | | Purchase of equipment. . . . . . . . . | 75,000 | to borrow cash. . . . . . . . . . . | 67,000 | | Acquisition of land by issuing | | Gain on sale of building. . . . . . . | 5,500 | | | long-term note payable. . . | 122,000 | Net income. . . . . . . . . . . . . . . . | 70,500 | | Cost basis of building sold. . . . . . | 53,000 | | | | | Requirement 1. Prepare Johnsons statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted. Leave unused cells blank.) Complete the statement one section at a time, beginning with the cash flows from operating activities. | | Johnson, Inc. | | | Statement of Cash Flows | | | Year Ended December 31, 2012 | | | Cash flows from operating activities: | | | | | Net income | | | | | Adjustments to reconcile net income to | | | | | net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net cash provided by (used for) operating activities | | | |
