Exercise 13-7 Meera CorporationAc€?cs comparative balance sheets are presented below. MEERA CORPO 1 answer below »

 
   

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Exercise 13-7

Meera CorporationAc€?cs comparative balance sheets are presented below.

MEERA CORPORATION
Comparative Balance Sheets
December 31

2014

2013 Cash

$14,700

$10,700 Accounts receivable

20,800

23,400 Land

20,000

26,000 Buildings

70,000

70,000 Accumulated depreciationAc€??buildings

(15,000

)

(10,000

)    Total

$110,500

$120,100 Accounts payable

$12,370

$28,100 Common stock

75,000

72,000 Retained earnings

23,130

20,000    Total

$110,500

$120,100

1. net income was $22,630. Dividends declared and paid were $19,500

2. all other changes in noncurrent account balances had a direct effect on cash flows except the change in accumulated depreciation. the land was sold for $5,000.
(a) Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000).)