Brooklyn Corporation is preparing its statement of cash flows for the past year. The company has gathered the following information about the past year just ended on December 31.
Retire bond payable (long-term).................. $15,000
Paid dividends in cash................................. $29,000
Decrease in inventory................................... $6,000
Decrease in accounts payable..................... $5,000
Sold land (investment)................................. $18,000
Increase in interest payable......................... $400
Cash balance, beginning of year.................. $92,000
Net income.................................................... $85,000
Decrease in accounts receivable................. $10,000
Increase in salaries payable......................... $7,000
Depreciation expense................................... $11,000
Increase in prepaid insurance...................... $600
Decrease in other short-term liabilities....... $3,000
Increase in taxes payable............................ $2000
Purchase of new computer system............. $10,000
Requirement:
Prepare a statement of cash flows for the past year using the indirect method.