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

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