Redbird Company Uses the Indirect Method to Prepare Its Statement

question 30

Essay

Redbird Company uses the indirect method to prepare its statement of cash flows. Using the following information, complete the worksheet for the year ended December 31, 2018.
- Net Income for the year ended December 31, 2018 was $49,000
- Depreciation expense for 2018 was $12,000
- During 2018, plant assets with a book value of $10,000 (cost $10,000 and accumulated depreciation $0) were sold for $14,000
- Plant assets were acquired for $52,000 cash
- Issued common stock for $28,000
- Issued long-term notes payable for $34,000
- Repaid long-term notes payable for $40,000
- Purchased treasury stock for 3,000
- Paid dividends of $10,000

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Definitions:

Calcaneus

The largest tarsal bone; also called the heel bone.

Tarsal Bone

One of the seven bones constituting the tarsus, located in the ankle and heel of the foot, playing a crucial role in foot movement and stability.

Femur

The bone in the upper leg; commonly called the thigh bone.

Fibula

The lateral bone of the lower leg.