EXERCISE 14-6 CESAR CORP Partial Statement of Cash Flows For the Year Ended December 31, 2008

  

The three accounts shown below appear in the general ledger of Cesar Corp. during 2008.
 

Equipment
 

Date
 

Debit
 

Credit
Balance
Jan. 1 Balance 160,000
July 31 Purchase of equipment 70,000 230,000
Sept. 2 Cost of equipment constructed 53,000 283,000
Nov. 10 Cost of equipment sold 49,000 234,000
Accumulated Depreciation-Equipment
Date
 

Debit
 

Credit
 

Balance
Jan. 1 Balance 71,000
Nov. 10 Accumulated depreciation on
equipment sold 30,000 41,000
Dec. 31 Depreciation for year 28,000 69,000
 

Retained Earnings
Date
 

Debit
 

Credit
 

Balance
Jan. 1 Balance 105,000
Aug. 23 Dividends (cash) 14,000 91,000
Dec. 31 Net income 67,000 158,000
 

Instructions
 

From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.) (If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.)
 

CESAR CORP
Partial Statement of Cash Flows
 

For the Year Ended December 31, 2008
Cash flows from operating activities
$
Adjustments to reconcile net income
to net cash by operating activities
$ Net cash by operating activities
 

Cash flows from investing activities
 

Net cash by investing activities
 

Cash flows from financing activities