Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts...
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Burns Corporation's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below:
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,000.
Required:
a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)
b. Prepare the investing activities section of the company's statement of cash flows for the year.
c. Prepare the financing activities section of the company's statement of cash flows for the year.
ncreases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $19,000 $13,000 (16,000) $ 4,000 $ 10,000 $70,000 31,000 Liability and Equity Accounts: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $(18,000) $16,000 $4,000 (60,000) $40,000 $87,000
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