P13-9A Condensed financial data of sinjh Inc. follow.
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Sinjh Inc. |
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Comparative Balance Sheets |
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December 31 |
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Assets |
2014 2013 |
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Cash |
$100,350 $ 48,400 |
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Accounts receivable |
92,800 33,000 |
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Inventory |
112,500 102,850 |
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Prepaid expenses |
29,300 26,000 |
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Long-term investments |
140,000 114,000 |
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Plant assets |
265,000 242,500 |
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Accumulated depreciation |
(47,000) (52,000) |
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Total |
$692,950 $514,750 |
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Liabilities and Stockholders’ Equity |
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Accounts payable |
$112,000 $ 67,300 |
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Accrued expenses payable |
16,500 17,000 |
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Bonds payable |
110,000 150,000 |
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Common stock |
220,000 175,000 |
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Retained earnings |
234,450 105,450 |
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Total “ |
$692,950 $514,750 |
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Sinjh Inc |
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Sales revenue Gain on disposal of plant assets |
$392,780 5,000 |
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Less: |
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Cost of goods sold |
135,460 |
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Operating expenses, excluding |
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depreciation |
12,410 |
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Depreciation expense |
45,000 |
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Income tax expense |
27,280 |
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Interest expense |
4,730 224,880 |
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Net income |
$172,900 |
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Additional information:
1. New plant assets costing $80,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $50,000 were sold for $12,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $43,900 was declared and paid during the year,
Instructions
Prepare a statement of cash flows using the indirect method.
P13-10A Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.
Prepare a statement of cash flows using the direct method.