| I. The Sage Corporation prepared, for 20×2 and 20×1, the following balance sheet data: | |||||
| 20×2 | 20×1 | ||||
| Cash | 87,375 | 63,750 | |||
| Investment in Available for Sales Securities | 17,250 | 105,000 | |||
| Accounts Receivable | 90,000 | 86,250 | |||
| Merchandise Inventory | 187,500 | 163,500 | |||
| Prepaid Insurance | 1,125 | 1,500 | |||
| Land, Building and Equipment | 1,378,875 | 1,087,500 | |||
| Accum. Depreciation | (558,750) | (498,750) | |||
| Total | 1,203,375 | 1,008,750 | |||
| Accounts Payable | 153,375 | 236,250 | |||
| Salaries Payable | 18,750 | 26,250 | |||
| Notes Payable (current) | 37,500 | 150,000 | |||
| Bonds Payable | 375,000 | 0 | |||
| Common Stock | 600,000 | 600,000 | |||
| Retained Earnings | 18,750 | (3,750) | |||
| Total | 1,203,375 | 1,008,750 | |||
| Additional Information: | |||||
| a) Sold available-for-sale securities costing $87,750 for $90,000. | |||||
| b) Equipment costing $18,750 with a book value of $3,750 was sold for $4,500. | |||||
| c) Issued 8% bonds payable at par, $375,000. | |||||
| d) Purchased new equipment for cash, $310,125. | |||||
| e) Paid cash dividends of $22,500 during the year. | |||||
| f) Net income for 20×2 was $45,000. | |||||
Prepare the cash flow statement (operating, investing and financing activities) for Sage for 20×2, using the indirect method for the operating activities.
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