Acc206 Principles of Accounting: E14-17 The income statement of Minerals Plus, Inc. follows

Acc206 Principles of Accounting

E14-17 Preparing the statement of cash flows - indirect method
The income statement of Minerals Plus, Inc. follows:
Minerals Plus, Inc.
Income Statement
Year Ended September 30,2012
Service revenue 235,000
Cost of goods sold 97,000
Salary expense 57,000
Depreciation expense 26,000
Income tax expense 4,000 184,000
Net income 51,000

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 receipts 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:
Sept. 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

1. Prepare Mineral 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.
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