Refer to information provided in preceding P10.3 and complete in good form an SC Fusing the indirect method.
You have the following comparative balance sheets for a restaurant for the years ending December 31, 0007, and December 31, 0008. Calculate the change in working capital and prepare the restaurantâ€™s statement of sources and uses of working capital for the year ending December 31, 0008.
a. Net income for Year 0008 $7,000. Annual depreciation of $1,000 wasincluded as an expense to arrive at net income.
b. New equipment costing $4,000 was purchased.
c. Dividends of $6,000 were paid out.
d. New shares (50 at $10 each) were issued.
e. The long-term loan was increased by $2,500