Question 14.8: How to Prepare a Statement of Cash Flows Using a Worksheet A...

How to Prepare a Statement of Cash Flows Using a Worksheet Approach
Refer to the comparative balance sheets for Portermart Company in Exhibit 14.3. Other (20X2) transactions include the following:
a. Cash dividends of $10,000 were paid.
b. Equipment was sold for $8,000. It had an original cost of $30,000 and a book value of $15,000. The loss is included in operating expenses.
c. Land with a fair market value of $40,000 was acquired by issuing common stock with a par value of $10,000.
d. One thousand shares of preferred stock (no par) were sold for $10 per share. The income statement for Portermart for 20X2 follows:
Sales                                                                           $ 400,000
Cost of goods sold                                                   (250,000)
Gross margin                                                           $ 150,000
Operating expenses                                                (110,000)
Net income                                                               $ 40,000

Required:
Prepare a worksheet for Portermart Company.