ANSWER KEY Accountants for Johnson, Inc., have assembled the following data for the year ended December 31

P14-25A Johnson Inc Preparing the statement of cash flows—indirect method

Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012:
December 31,
2012 2011
Current Accounts:
Current assets:
Cash and cash equivalents $ 92,100 $ 17,000
Accounts receivable 64,500 69,200
Inventories 87,000 80,000
Current liabilities:
Accounts payable 57,900 56,200
Income tax payable 14,400 17,100

Transaction Data for 2012:
Issuance of common stock for cash----------------------- $ 40,000
Depreciation expense -------------------------------------- 25,000
Purchase of equipment ------------------------------------- 75,000
Acquisition of land by issuing long-term note payable--- 122,000
Cost basis of building sold---------------------------------- 53,000
Payment of note payable----------------------------------- $48,100
Payment of cash dividends--------------------------------- 54,000
Issuance of note payable to borrow cash----------------- 67,000
Gain on sale of building------------------------------------- 5,500
Net income--------------------------------------------------- 70,500

Requirement
1.Prepare Johnson's statement of cash flows using the indirect method. Include an accompanying schedule of noncash investing and financing activities.
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