Comparative statement of financial position
2014 2013
Assets
Land 18,000 40,000
Equipment 70,000 60,000
Accumulated depreciation (20,000) (13,000)
Prepaid insurance 25,000 17,000
Accounts receivable (net) 80,000 60,000
Cash 36,000 31,000
Total Assets $209,000 $195,000
Equity and Liabilities
Share capital-ordinary $140,000 $115,000
Retained earnings 31,000 55,000
Bonds payable 27,000 19,000
Accounts payable 11,000 6,000
Total equity and liabilities $209,000 $195,000
Additional information:
1. Net loss for 2014 is $15,000.
2. Cash dividends of $9,000 were declared and paid in 2014.
3. Land was sold for cash at a loss of $7,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $12,000 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for ordinary shares. The fair value of the shares at the time of the exchange was $25,000.
Instructions
Prepare a statement of cash flows for the year ended 2014, using the indirect method.