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Indirect Method$-$Preparing a Statement of Cash Flows and Comparative Balance Sheets from Financial Data

Linda Ray, the president of Company $x,$ requires a statement of cash flows for its annyal report ending December $31.$ The following balance sheet data are from Comp

The December $31$ year$-$end Cash balance decreased by $$156,250$ from $$107,500$ to $$45,000.$

The net balance in Accounts Receivable decreased by $$62,500$ during the year from $$150,000$ to $$125,000.$ The company had no short$-$term investments.

Inventory increased $$56,250$ from $$177,500$ to $$200,000.$

Accounts Payable increased $$18,750$ during the year from $$72,500$ to $$80,000.$

Income Tax Payable increased $$25,000$ during the year from $$10,000$ to $$20,000.$

Salaries Payable decreased by $$31,250$ during the yefar from $$22,500$ to $$10,000.$ There were no other current liabilities.

$5.$ During December, the company settled a $$25,000$ note payable $($fully liquidating the outstanding balance$)$ by issuing shares of its own common stock with equal valu

$6.$ Cash expenditures during the year were $($a$)$ payment of long$-$term debt, $$160,000$; $($b$)$ purchase of fixed assets, $$185,000($ending balance of $$397,500)$; $($c$)$ payment of of land as an investment, $$62,500.$

$7.$ Sale and issuance of Company $x$ common stock for $$50,000$ cash. The December $31,$ prior year, balance of Common Stock was $$125,000.$

$8.$ Issuance of a long$-$term mortgage note, $$75,000$ cash.

$9.$ Accumulated Depreciation is $$130,000$ on December $31$ of the current year.

$10.$ Retained Earnings on December $31$ of the prior year is $$167,500.$

$11.$ Sold fixed assets; the following entry was made:

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