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15 value: 10.00 points E12-18 Preparing a Statement of Cash Flows (Indirect Method) LO12-2,12-4, 12-6...

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Accounting

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15 value: 10.00 points E12-18 Preparing a Statement of Cash Flows (Indirect Method) LO12-2,12-4, 12-6 Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented bel Current Year Prior Year Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accmulated depreciation 8,255 1,350 750 610 $10,955 630 115 0 0 $11,700 $10,850 $ 480 1,750 Wages payable Short-term note payable Common stock Retained earnings 185 3,600 3,600 6,350 $10,850 Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $47,000 115 36,500 10,150 $ 235 Additional Data a. Prepaid expenses relate to rent paid in advance b. Other expenses were paid in cash. c. Purchased equipment for $610 cash at the beginning of the current year and recorded $115 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $185

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