Problem

Preparing the statement of cash flows—indirect method [20-30 min]The income statement of M...

Preparing the statement of cash flows—indirect method [20-30 min]

The income statement of Minerals Plus, Inc., follows:

Additional data follow:

a. Acquisition of plant assets is $118,000. Of this amount, $100,000 is paid in cash and $18,000 by signing a note payable.
b. Cash receipt from sale of land totals $28,000. There was no gain or loss.
c. Cash receipts from issuance of common stock total $29,000.
d. Payment of note payable is $18,000.
e. Payment of dividends is $8,000.
f. From the balance sheet:

	September 30,
	2012	2011
Current Assets:
Cash...........................	$ 30,000	$ 8,000
Accounts receivable...............	41,000	59,000
Inventory.......................	97,000	93,000
Current Liabilities:
Accounts payable.................	$ 30,000	$ 17,000
Accrued liabilities.................	11,000	24,000

Requirement

1. Prepare Minerals Plus’s statement of cash flows for the year ended September 30, 2012, using the indirect method. Include a separate section for noncash investing and financing activities.