Chapter 11, Problem 7SE

Operating activities—indirect method (Learning Objective 3) 10-15 min.

Trident Equipment’s accountants assembled the following data for the year ended April 30, 2018.

Net Income.............................	$72,000	Purchase of equipment
Proceeds from issuance of		with cash ..................................	$58,000
common stock........................	6,000	Decrease in current liabilities...	4,000
Payment of dividends............	5,000	Payment of long-term
increase in current assets		note payable..............................	38,000
other than cash........................	35,000	Proceeds from sale of land ......	63,000
Purchase of treasury stock.....	7,000	Depreciation Expense...............	23,000

Prepare Trident Equipment’s statement of cash flows for the year ended April 30, 2018, using the indirect method. The cash balance for Trident Equipment Inc., at April 30, 2017, was $11,000.