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On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method.
Assume that equipment costing $25,000 was purchased for cash and no long term assets were sold during the period.
Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000.
Transform Fault
A type of fault where two tectonic plates slide horizontally past each other, typically associated with seismic activity.
Mid-ocean Ridge
An underwater mountain range, formed by plate tectonics, where new oceanic crust is created by volcanic activity.
Linear Island Chain
A series of islands arranged along a straight or nearly straight line, often formed by volcanic activity along a submarine ridge.
Fracture Zone
An area in oceanic or continental crust characterized by cracks and faults due to tectonic stresses, often associated with earthquake activity.
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