Chapter 16, Problem 16.3BPR

Statement of cash flows—indirect method

The comparative balance sheet of Coulson, Inc. it December 31, 20Y2 and 20Y1, is as follows:

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 300,600	$ 337,800
Accounts receivable (net)	704,400	609,600
Inventories	918,600	865,800
Prepaid expenses	18,600	26,400
Land	990,000	1,386,000
Buildings	$1,980,000	$ 990,000
Accumulated depreciation—buildings	(397,200)	(366,000)
Equipment	660,600	529,800
Accumulated depreciation—equipment	(133,200)	(162,000)
Total assets	$5,042,400	$4,217,400
Liabilities and Stockholders' Equity
Accounts payable	$ 594,000	$ 631,200
Income taxes payable	26,400	21,600
Bonds payable	330,000	0
Common stock, $20 par	320,000	180,000
Paid in capital: Excess of issue price over par—common stock	950,000	810,000
Retained earnings	2,822,000	2,574,600
Total liabilities and stockholders' equity	$5,042,400	$4,217,400

The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows:

Instructions

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.