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E22.15 (LO 2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. Cash Current assets other than cash Long-term debt investments December 31, 2025 $ 15,000 85,000 December 31, 2024 $ 8,000 60,000 53,000 Additional information: Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings 10,000 335,000 $445,000 215,000 $336,000 $ 20,000 40,000 75,000 254,000 $ 40,000 22,000 -0- 56,000 $445,000 254,000 20,000 $336,000 1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2024, were sold in 2025 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2025 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $57,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash flows for the year 2025 using the indirect method.

E22.15 (LO 2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. Cash Current assets other than cash Long-term debt investments December 31, 2025 $ 15,000 85,000 December 31, 2024 $ 8,000 60,000 53,000 Additional information: Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings 10,000 335,000 $445,000 215,000 $336,000 $ 20,000 40,000 75,000 254,000 $ 40,000 22,000 -0- 56,000 $445,000 254,000 20,000 $336,000 1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2024, were sold in 2025 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2025 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $57,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash flows for the year 2025 using the indirect method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E22.15 (LO 2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. Cash Current assets other than cash Long-term debt investments December 31, 2025 $ 15,000 85,000 December 31, 2024 $ 8,000 60,000 53,000 Additional information: Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings 10,000 335,000 $445,000 215,000 $336,000 $ 20,000 40,000 75,000 254,000 $ 40,000 22,000 -0- 56,000 $445,000 254,000 20,000 $336,000 1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2024, were sold in 2025 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2025 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $57,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash flows for the year 2025 using the indirect method.
Transcribed Image Text:E22.15 (LO 2) (SCF-Indirect Method) The following data are taken from the records of Alee Company. Cash Current assets other than cash Long-term debt investments December 31, 2025 $ 15,000 85,000 December 31, 2024 $ 8,000 60,000 53,000 Additional information: Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings 10,000 335,000 $445,000 215,000 $336,000 $ 20,000 40,000 75,000 254,000 $ 40,000 22,000 -0- 56,000 $445,000 254,000 20,000 $336,000 1. Held-to-maturity debt securities carried at a cost of $43,000 on December 31, 2024, were sold in 2025 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $50,000 and were 80% depreciated were sold during 2025 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $57,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $20,000. Instructions Prepare a statement of cash flows for the year 2025 using the indirect method.
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