(Solution) - Presented below are data taken from the records of Morganstern -(2025 Original AI-Free Solution)

Paper Details

Presented below are data taken from the records of Morganstern Company.

Additional information:
1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2011, were sold in 2012 for $34,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2012 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
3. Net income as reported on the income statement for the year was $59,000.
4. Dividends paid amounted to $10,000.
5. Depreciation charged for the year was $28,000.
Instructions
Prepare a statement of cash flows for the year 2012 using the indirectmethod.