The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2014 and 2013, with a column showing the increase (decrease) from 2013 to 2014.
|
COMPARATIVE BALANCE SHEETS
|
|
|
2014
|
|
2013
|
|
Increase
(Decrease)
|
| Cash |
|
$815,120
|
|
|
$700,410
|
|
|
$114,710
|
|
| Accounts receivable |
|
1,128,400
|
|
|
1,168,300
|
|
|
(39,900
|
) |
| Inventory |
|
1,850,700
|
|
|
1,714,800
|
|
|
135,900
|
|
| Property, plant, and equipment |
|
3,306,600
|
|
|
2,966,600
|
|
|
340,000
|
|
| Accumulated depreciation |
|
(1,164,700
|
) |
|
(1,039,700
|
) |
|
(125,000
|
) |
| Investment in Myers Co. |
|
310,870
|
|
|
275,060
|
|
|
35,810
|
|
| Loan receivable |
|
250,210
|
|
|
-
|
|
|
250,210
|
|
| Total assets |
|
$6,497,200
|
|
|
$5,785,470
|
|
|
$711,730
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$1,014,100
|
|
|
$955,400
|
|
|
$58,700
|
|
| Income taxes payable |
|
29,080
|
|
|
50,880
|
|
|
(21,800
|
) |
| Dividends payable |
|
80,930
|
|
|
99,860
|
|
|
(18,930
|
) |
| Lease liabililty |
|
400,950
|
|
|
-
|
|
|
400,950
|
|
| Common stock, $1 par |
|
500,100
|
|
|
500,100
|
|
|
-
|
|
| Paid-in capital in excess of par-common stock |
|
1,499,100
|
|
|
1,499,100
|
|
|
-
|
|
| Retained earnings |
|
2,972,940
|
|
|
2,680,130
|
|
|
292,810
|
|
| Total liabilities and stockholders' equity |
|
$6,497,200
|
|
|
$5,785,470
|
|
|
$711,730
|
|
Additional information:
| 1. |
|
On December 31, 2013, Sullivan acquired 25% of Myers Co.'s common stock for $275,060. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,240. Myers reported income of $143,240 for the year ended December 31, 2014. No dividend was paid on Myers's common stock during the year. |
| 2. |
|
During 2014, Sullivan loaned $300,330 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,120, plus interest at 10%, on December 31, 2014. |
| 3. |
|
On January 2, 2014, Sullivan sold equipment costing $60,950, with a carrying amount of $36,940, for $39,670 cash. |
| 4. |
|
On December 31, 2014, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,950, which equals the fair value of the building. Sullivan made the first rental payment of $59,090 when due on January 2, 2015. |
| 5. |
|
Net income for 2014 was $373,740. |
| 6. |
|
Sullivan declared and paid cash dividends for 2014 and 2013 as shown below. |
|
|
2014
|
|
2013
|
| Declared |
|
December 15, 2014 |
|
December 15, 2013 |
| Paid |
|
February 28, 2015 |
|
February 28, 2014 |
| Amount |
|
$80,930 |
|
$99,860 |
Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2014, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)