(Solution) - Ingersol Construction Supply Company is developing its annual fi -(2025 Original AI-Free Solution)

Paper Details

Ingersol Construction Supply Company is developing its annual financial statements at December 31, 2012. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

Additional Data:
a. Bought equipment for cash, $21,000.
b. Paid $6,000 on the long-term note payable.
c. Issued new shares of stock for $16,000 cash.
d. Dividends of $15,000 were declared and paid in cash.
e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; and other, $6,800.
f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required:
1. Prepare the statement of cash flows using the indirect method for the year ended December 31, 2012.2. Evaluate the statement of cashflows.