Here are comparative balance sheets for Wilson Company.
Wilson Company
Comparative Balance Sheets
December 31, 2013
Assets 2013 2012
Cash $ 44,550 $ 13,500
Accounts receivable 24,300 18,900
Inventories 33,750 24,300
Prepaid expenses 8,100 12,150
Long-term investments 0 24,300
Equipment 81,000 43,200
Accumulated depreciation Equipment (27,000) (18,900)
Total assets $ 164,700 $ 117,450
Liabilities and Stockholder s Equity
Accounts payable $ 22,950 $ 9,450
Bonds payable 49,950 63,450
Common stock ($1 par) 54,000 31,050
Retained earnings 37,800 13,500
Total liabilities and stockholder s equity $ 164,700 $ 117,450
Additional information:
1. The 2013 Income Statement reported $8,100 in depreciation expense, a $5,400 loss on
sale of investments and Net income of $48,600.
2. Cash dividends of $24,300 were declared and paid.
3. Long-term investments that has a cost of $24,300 were sold for $18,900
4. Sales for 2013 were $162,000.
Instructions:
Prepare a statement of cash flows for 2013 using the indirect method.