The following information is available for the Fletchers Corporation:
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Fletchers Corporation
Balance Sheets
At December 31
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2013
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2012
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Assets:
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Cash
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$ 24,640
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$ 23,040
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Accounts receivable
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32,180
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29,400
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Merchandise inventory
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73,125
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61,710
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Long-term investments
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55,900
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56,400
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Equipment
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175,500
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145,500
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Accumulated depreciation
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(33,550)
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(31,200)
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Total assets
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$327,795
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$284,850
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Liabilities:
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Accounts payable
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$ 65,000
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$ 40,380
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Incomes taxes payable
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10,725
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10,200
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Bonds payable
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48,750
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66,000
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Total liabilities
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$124,475
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$116,580
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Equity:
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Common stock
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117,000
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96,000
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Contributed capital in excess of pay
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13,000
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9,000
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Retained earnings
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73,320
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63,270
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Total equity
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$203,320
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$168,270
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Total liabilities and equity
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$327,795
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$284,850
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Fletchers Corporation
Income Statement
For Year Ended December 31, 2013
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Sales
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$240,000
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Cost of goods sold
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$80,900
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Depreciation expense
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29,400
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Other operating expenses
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48,000
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Interest expense
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2,000
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(160,300)
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Other gains (losses):
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Loss on sale of equipment
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(8,400)
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Income before taxes
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71,300
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Income taxes expense
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27,650
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Net income
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$ 43,650
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Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid.
(5) Additional shares of stock were issued for cash.
Required: Prepare a statement of cash flows for the 2013 calendar year using the indirect method.