Prepare a Statement of Cash Flows for the year ending December 31, 2014 using the indirect method of reporting cash flows from operating activities.
Assume that equipment that cost $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were net income of $56,000 and cash dividends declared and paid of $18,000.
|
Year
|
Year
|
|
2014
|
2013
|
|
Cash
|
$65,000
|
$ 54,000
|
|
Accounts receivable (net)
|
78,000
|
85,000
|
|
Inventories
|
106,500
|
90,000
|
|
Land
|
0
|
20,000
|
|
Equipment
|
495,000
|
370,000
|
|
Accumulated depreciation
|
(215,000)
|
(158,000)
|
|
$529,500
|
$461,000
|
|
|
|
|
Accounts payable
|
$ 53,500
|
$ 55,000
|
|
Common stock, $10 par
|
200,000
|
170,000
|
|
Paid-in capital in excess of par--
|
|
|
|
common stock
|
62,000
|
60,000
|
|
Retained earnings
|
214,000
|
176,000
|
|
$529,500
|
$461,000
|