Yamile Romero and Maria Rodriguez formed a partnership. They provided the following information for their Company and request you to prepare:
(1) Prepare a complete statement of cash flows for calendar-year 2015 using the indirect method.
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Romero and Rodriguez Company
Balance Sheets
At December 31
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2015
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2014
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Assets:
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Cash
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$29,568
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$27,648
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Accounts receivable
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38,616
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35,280
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Merchandise inventory
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87,750
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74,052
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Long-term investments
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67,080
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67,680
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Machinery
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210,600
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174,600
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Accumulated depreciation
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(40,260)
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(37,440)
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Total assets
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$393,354
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$341,820
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Liabilities:
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Accounts payable
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$78,000
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$48,456
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Income taxes payable
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12,870
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12,240
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Bonds payable
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58,500
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79,200
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Total liabilities
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$149,370
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$139,896
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Equity:
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Common stock
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140,400
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115,200
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Paid-in capital in excess of par
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15,600
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10,800
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Retained earnings
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87,984
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75,924
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Total equity
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$243,984
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$201,924
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Total liabilities and equity
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$393,354
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$341,820
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Romero and Rodriguez Company
Income Statement
For Year Ended December 31, 2015
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Sales
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$288,000
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Cost of goods sold
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$97,080
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Depreciation expense
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35,280
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Other operating expenses
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57,600
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Interest expense
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2,400
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(192,360)
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Other gains (losses):
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Loss on sale of equipment
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(10,080)
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Income before taxes
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85,560
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Income taxes expense
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33,180
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Net income
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$52,380
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Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old machinery with an original cost of $45,060 was sold for $2,520 cash.
(3) New machinery was purchased for $81,060 cash.
(4) Cash dividends of $40,320 were paid.
(5) Additional shares of stock were issued for cash.