On the Basis of the Following Data for Breach Co

question 74

Essay

On the basis of the following data for Breach Co. for the year ended December 31, 2011 and the preceding year, prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities.
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 2010 was $76,000.
Cash dividends declared and paid were $13,000.

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Definitions:

Electrocardiogram

A diagnostic test that measures the electrical activity of the heart to identify various heart conditions.

Semilunar Valves

Valves located at the exits of the heart, preventing blood from flowing back into the ventricles from the arteries.

Diastole

The phase of the heartbeat when the heart muscle relaxes and allows the chambers to fill with blood.

Systole

The phase of the heartbeat during which the heart muscle contracts and pumps blood from the chambers into the arteries.