|
| The income statement for 2014 and comparative balance sheets of Daniel Divers for 2013 and 2014 appear below. Dividends totaling $51,200 were paid during the year. Equipment costing $21,500 with a book value of $4,700 was sold for $11,300 cash during the year. |
|
|
December 31 |
| Assets |
|
2014 |
|
|
2013 |
|
| Cash |
|
$56,800 |
|
|
$58,300 |
|
| Accounts receivable |
|
14,500 |
|
|
12,200 |
|
| Merchandise inventories |
|
22,600 |
|
|
30,000 |
|
| Equipment |
|
112,000 |
|
|
98,700 |
|
| Accumulated depreciation |
|
(35,600 |
) |
|
(28,400 |
) |
| Total assets |
|
$170,300 |
|
|
$170,800 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
| Accounts payable |
|
$31,500 |
|
|
$34,700 |
|
| Income taxes payable |
|
8,900 |
|
|
7,400 |
|
| Long-term notes payable |
|
46,700 |
|
|
52,300 |
|
| Common stock, $0.50 par |
|
37,600 |
|
|
32,100 |
|
| Retained earnings |
|
45,600 |
|
|
44,300 |
|
| Total liabilities and stockholders’ equity |
|
$170,300 |
|
|
$170,800 |
|
| Sales |
|
$389,000 |
| Cost of goods sold |
|
178,000 |
| Depreciation expense |
|
24,000 |
| Interest expense |
|
2,700 |
| Other expenses |
|
109,700 |
| Gain on sale of equipment |
|
6,600 |
| Income taxes expense |
|
28,700 |
| Net income |
|
$52,500 |
Prepare the operating activities section of the 2014 statement of cash flows 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).)
