Condensed financial data of Cadet Company are shown below.
|
CADET COMPANY |
||
|
Assets |
2012 |
2011 |
|
Cash |
$ 78,700 |
$ 33,400 |
|
Accounts receivable |
72,970 |
37,000 |
|
Inventory |
121,900 |
102,650 |
|
Long-term investments |
89,500 |
107,000 |
|
Plant assets |
320,000 |
205,000 |
|
Accumulated depreciation |
(49,500) |
(40,000) |
|
Total |
$633,570 |
$445,050 |
|
Liabilities and Stockholders” Equity |
||
|
Accounts payable |
$ 57,700 |
$ 48,280 |
|
Accrued expenses payable |
15,100 |
18,830 |
|
Bonds payable |
140,000 |
70,000 |
|
Common stock |
250,000 |
200,000 |
|
Retained earnings |
170,770 |
107,940 |
|
Total |
$633,570 |
$445,050 |
|
CADET COMPANY |
||
|
Sales |
$294,500 |
|
|
Gain on sale of plant assets |
3,000 |
|
|
297,500 |
||
|
Less: |
||
|
Cost of goods sold |
$104,460 |
|
|
Operating expenses, excluding |
||
|
depreciation expense |
14,670 |
|
|
Depreciation expense |
35,500 |
|
|
Income taxes |
32,100 |
|
|
Interest expense |
2,940 |
189,670 |
|
Net income |
$107,830 |
|
Additional information:
1. New plant assets costing $151,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 and accumulated depreciation of $26,000 were sold for $13,000.
4. A cash dividend of $45,000 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.