|
Jhutti Company
Comparative Balance Sheets
December 31
|
|
Assets
|
2014
|
2013
|
|
Cash
|
$90,300
|
$47,250
|
|
Accounts receivable
|
80,900
|
57,000
|
|
Inventory
|
121,900
|
102,650
|
|
Investments
|
84,000
|
87,000
|
|
Equipment
|
250,000
|
205,000
|
|
Accumulated depreciation-equipment
|
-46,600
|
-40,000
|
|
$580,500
|
$458,900
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable
|
$53,400
|
$48,280
|
|
Accrued expenses payable
|
12,100
|
18,830
|
|
Bonds payable
|
100,000
|
70,000
|
|
Common stock
|
240,000
|
200,000
|
|
Retained earnings
|
175,000
|
121,790
|
|
$580,500
|
$458,900
|
|
Jhutti. Company
Income Statement
For the Year Ended December 31, 2014
|
|
Sales revenue
|
$297,500
|
|
|
Gain on disposal of plant assets
|
8,550
|
$306,050
|
|
Less:
|
|
|
|
Cost of goods sold
|
99,460
|
|
|
Operating expenses (excluding depreciation expense)
|
14,670
|
|
|
Depreciation expense
|
47,900
|
|
|
Income tax expense
|
7,270
|
|
|
Interest expense
|
2,940
|
172,240
|
|
Net income
|
|
$133,810
|
Additional Information
Equipment costing $92,000 was purchased for cash during the year. Investments were sold at cost.
Equipment costing $47,000 was sold for $14,250, resulting in gain of $8,550.
A cash dividend of $80,600 was declared and paid during the year.
Additional Information Continued... Bonds of $30,000 were issued.
$40,000 of Common Stock was issued
Instructions: Please prepare a proper Statement of Cash Flows for Jhutti Company using the Indirect Method in either Word or Excel. Handwritten copies will not be accepted!