On the basis of the following data for Branch Co. for the current and preceding...

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Accounting

On the basis of the following data for Branch Co. for the current and preceding years ended December 31. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. 1 Current year Prior year 2 Cash $65,000.00 $54,000.00 3 Accounts receivable (net) 78,000.00 85,000.00 4 Inventories 106,500.00 90,000.00 5 Land 20,000.00 6 Equipment 495,000.00 370,000.00 7 Accumulated depreciation (215,000.00) (158,000.00) 8 $529,500.00 $461,000.00 9 Accounts payable (merchandise creditors) $53,500.00 $55,000.00 10 Common stock, $10 par 200,000.00 170,000.00 11 Paid-in capital in excess of parcommon stock 62,000.00 60,000.00 12 Retained earnings 214,000.00 176,000.00 13 $529,500.00 $461,000.00

Prepare a statement of cash flows using the indirect method. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. Less or Plus will automatically appear if it is required.

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