Prepare a statement of cash flows (indirect method) in good form for Lynch Foundries Inc. for 2014.
Information in addition to the comparative balance sheet data below includes:
New equipment was purchased for $59,000, with payment made as $40,000 down and a long-term note for the balance. The short-term note payable was arranged with a supplier to finance inventory purchases on credit. In 2014, Lynch declared and paid dividends of $15,000; the only other item affecting Retained Earnings was net income.
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Dec 31, 2014
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Dec 31, 2013
|
|
Cash & cash equivalents
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$ 42,000
|
$ 33,000
|
|
Accounts receivable
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84,000
|
77,000
|
|
Inventory
|
95,700
|
131,000
|
|
Property, plant & equipment
|
560,000
|
500,000
|
|
Accumulated depreciation-PPE
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(231,500)
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(210,000)
|
|
TOTAL ASSETS
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$ 550,200
|
$ 531,000
|
|
|
|
|
Short-term notes payable
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$ --
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$ 30,000
|
|
Accounts payable
|
81,000
|
69,000
|
|
Long-term notes payable
|
110,000
|
90,000
|
|
Bonds payable
|
60,000
|
120,000
|
|
Common stock, $1 par
|
35,000
|
35,000
|
|
Additional paid-in capital
|
165,000
|
165,000
|
|
Retained earnings
|
99,200
|
22,000
|
|
TOTAL LIAB & S/H EQUITY
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$ 550,200
|
$ 531,100
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