Prepare the statement of cash flows for the year 2018 using indirect method.

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Chapter 11, Problem 39BP

1.

To determine

Prepare the statement of cash flows for the year 2018 using indirect method.

2.

To determine

Evaluate the investment to be made in Incorporation L.

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repare a statement of cashflows uusing the indirect method. Accountants for Putterham, Inc. have assembled the following data for the year ended December 31, 2018: 2018 2017 Current Assets: Cash $ 99,400 $ 25,000 Accounts Receivable 64,100 69,700 Merchandise Inventory 83,000 75,000 Current Liabilities: Accounts Payable 57,600 55,200 Income Tax Payable 14,800 16,800 Transaction Data for 2018: Issuance of common stock for cash $ 38,000 Payment of notes payable $ 46,100 Depreciation expense 24,000 Payment of cash dividends 50,000 Purchase of equipment with cash 74,000 Issuance of notes payable to borrow cash 62,000 Acquisition of land by issuing long-term notes payable 119,000 Gain on sale of building 4,500 Book value of building sold 54,000 Net income 68,500 Prepare Putterham’s statement of cash flows using the indirect method.…