The comparative balance sheets for Ashley Company as of December 31 are presented below.
|
ASHLEY COMPANY
|
|
Comparative Balance Sheets
|
|
December 31
|
|
Assets
|
2013
|
|
2012
|
|
Cash
|
$70,600
|
|
$45,220
|
|
Accounts receivable
|
43,599
|
|
61,607
|
|
Inventory
|
151,897
|
|
141,806
|
|
Prepaid expenses
|
15,290
|
|
21,335
|
|
Land
|
105,700
|
|
130,600
|
|
Equipment
|
228,359
|
|
155,043
|
|
Acc. depr. - equipment
|
(45,192)
|
|
(35,358)
|
|
Building
|
199,500
|
|
199,500
|
|
Acc. depr. - building
|
(59,850)
|
|
(39,900)
|
|
Total
|
$709,903
|
|
$679,853
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable
|
$47,460
|
|
$39,754
|
|
Bonds payable
|
261,050
|
|
300,300
|
|
Common stock, $1 par
|
197,650
|
|
158,400
|
|
Retained earnings
|
203,743
|
|
181,399
|
|
Total
|
$709,903
|
|
$679,853
|
Additional information:
- Operating expenses include depreciation expense of $41,747 and charges from prepaid expenses of $6,045.
- Land was sold for cash at book value.
- Cash dividends of $14,684 were paid.
- Net income for 2011 was $37,028.
- Equipment was purchased for cash. In addition, equipment costing $22,162 with a book value of $10,199 was sold for $6,272 cash.
- Bonds were converted at face value by issuing 39,250 shares of $1 par value common stock.
Instructions: Prepare a statement of cash flows for the year ended December 31, 2013, using the indirect method.