Alden Corporation's most recent comparative Balance Sheet is as follows: Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$7,000 $12,000 Accounts receivable 11,000 2,000 Inventory 39,000 24,000 Long-term investments 23,000 9,000 Property, plant, and equipment 83,000 100,000 Less accumulated depreciation 66,000 62,000 Total assets$97,000 $85,000 Liabilities and Stockholders' Equity: Accounts payable$9,000 $28,000 Income taxes payable 1,000 2,000 Bonds Payable 16,000 10,000 Common Stock 42,000 30,000 Retained Earnings 29,000 15,000 Total liabilities and stockholders' equity$97,000 $85,000 Alden's net income was $34,000. No equipment was purchased and no long-term investments
were sold. There was a gain of $3,000 when equipment was sold. The accumulated depreciation on the equipment that was sold was $12,000. Cash dividends of $20,000 were declared and paid during the year.Required:Prepare Alden's statement of cash flows using the indirect method.
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Operating activities:
| ? | ? | ? |
| Net income | ? | $34,000 |
| Adjustments to convert net income to a cash basis: | ? | ? |
| Depreciation ($66,000 - $62,000 + $12,000) | $16,000 | ? |
| Increase in accounts receivable ($11,000 - $2,000) | (9,000) | ? |
| Increase in inventory ($39,000 - $24,000) | (15,000) | ? |
| Decrease in accounts payable ($9,000 - $28,000) | (19,000) | ? |
| Decrease in income taxes payable ($1,000 - $2,000) | (1,000) | ? |
| Gain on sale | (3,000) | (31,000) |
| Net cash provided by (used in) operating activities | ? | 3,000 |
| Investing activities: | ? | ? |
| Increase in long-term investments ($23,000 - $9,000) | (14,000) | ? |
| Sale of property, plant, and equipment* | 8,000 | ? |
| Net cash provided by (used in) investing activities | ? | (6,000) |
| Financing activities: | ? | ? |
| Increase in bonds payable ($16,000 - $10,000) | 6,000 | ? |
| Issuance of common stock ($42,000 - $30,000) | 12,000 | ? |
| Dividends paid | (20,000) | ? |
| Net cash provided by (used in) financing activities | ? | (2,000) |
| Net decrease in cash and cash equivalents | ? | (5,000) |
| Beginning cash and cash equivalents | ? | 12,000 |
| Ending cash and cash equivalents | ? | $7,000 |
= ($100,000 - $83,000) - $12,000
= $17,000 - $12,000
= $5,000
Gain on sale = Proceeds - Net book value
$3,000 = Proceeds - $5,000
Proceeds = $3,000 + $5,000
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