Chapter 11, Problem 11.59AP

(Learning Objectives 2, 3: Prepare the statement of cash flows—indirect method) Smither Software Corp. has assembled the following data for the years ending December 31, 2018 and 2017.

	A	B	C
1		December 31
2		2018	2017
3	Current Accounts:
4	Current assets:
5	Cash and cash equivalents	$ 66,500	$ 26,000
6	Account receivable	21,000	64,300
7	Inventories	89,500	79,000
8	Prepaid expenses	3,600	2,300
9	Current liabilities:
10	Accounts payable	$ 58,100	$ 55,300
11	Income tax payable	18,500	16,200
12	Accrued liabilities	15,100	17,200
13

Transaction Data for 2018:
Acquisition of land by issuing long-term note payable …..	$204,000
Stock dividends …………..	31,400
Collection of loan ……….	11,000
Depreciation expense ……..	21,000
Purchase of building with cash ……..	97,000
Retirement of bonds payable by issuing common stock	60,000
Purchase of long-term investment with cash.........	44,700
Purchase of treasury stock …..	$14,500
Loss on side of equipment ……….	4,000
Payment of cash dividends ……	19,000
Issuance of long-term note payable to borrow cash ……….	24,400
Net income..........................	66,000
Issuance of common stock for cash...........................	37,000
Proceeds from sale of equipment ……….	12,700
Amortization expense ……….	5.100

Requirement

1. 1. Prepare Smither s statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities.