The Net Changes in the Balance Sheet Accounts of Keating

question 133

Essay

The net changes in the balance sheet accounts of Keating Corporation for the year 2015 are shown below.
1. On January 2, 2015 short-term investments (classified as available-for-sale) costing $121,000 were sold for $155,000.
2. The company paid a cash dividend on February 1, 2015.
3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2015 and 2014, respectively.
4. Major repairs of $33,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2015.
5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was recorded by the parent.
6. At January 1, 2015, the cash balance was $166,000.

Instructions
Prepare a statement of cash flows (indirect method) for the year ended December 31, 2015. Keating Corporation has no securities which are classified as cash equivalents.

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Definitions:

Urinary System

The organs of the body involved in the production, storage, and expulsion of urine.

Diuretic Drugs

Medications designed to increase the amount of water and salt expelled from the body as urine.

Blood Volume

The total amount of blood circulating within an individual's vascular system.

Postglomerular Blood

Blood that has passed through the glomeruli of the kidneys, where filtration of blood takes place.