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Prepare a statement of cash flows for the year ended

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Prepare a statement of cash flows for the year ended 1 Assuming a statement of cash flows is prepared, indicate the reporting of the transactions and events listed below by major categories on the statement. Use the following code letters to indicate the appropriate category under which the item would appear on the statement of cash flows. Code Cash Flows From Operating Activities Add to Net Income A Deduct from Net Income D Cash Flows From Investing Activities IA Cash Flows From Financing Activities FA Category 1. Common stock is issued for cash at an amount above par value. 2. Merchandise inventory increased during the period. 3. Depreciation expense recorded for the period. 4. Building was purchased for cash. 5. Bonds payable were acquired and retired at their carrying value. 6. Accounts payable decreased during the period. 7. Prepaid expenses decreased during the period. 8. Treasury stock was acquired for cash. 9. Land is sold for cash at an amount equal to book value. 10. Patent amortization expense recorded for a period. 2 A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet Dec. 31, 2014 Dec. 31, 2013 Assets Cash $ 34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation—equipment (20,000) (15,000) Total assets $123,000 $85,000 Liabilities and Stockholders’ Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders’ equity $123,000 $85,000 Additional information: 1. Net income for the year ending December 31, 2014 was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14,000. 4. Sales for 2014 were $120,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Prepare a statement of cash flows for the year ended

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