(Solution) - Comparative balance sheets for Erisa Magambo Company are presented below -(2025 Original AI-Free Solution)

Paper Details

Comparative balance sheets for Erisa Magambo Company are presented below.

Additional information:
1. Net income for 2014 was $120,000.
2. Cash dividends of $70,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $50,000 cash.
5. Depreciation expense was $24,000.
6. Sales for the year were $978,000.
Instructions
Prepare a worksheet for a statement of cash flows for 2014 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference eachentry.