Harmon Helmets purchased equipment for $62,000 cash, sold equipment costing $36,000 with a book value of $22,000 at a loss, and declared dividends during 2013. No new notes payable were issued during the year. Financial data follows:
|
|
Dec. 31, 2013
|
Dec. 31, 2012
|
Change
|
|
|
2013
|
|
Cash
|
$44,600
|
$43,000
|
$1,600
|
|
Sales revenue
|
$850,000
|
|
Accounts receivable
|
31,200
|
13,800
|
17,400
|
|
Cost of sales
|
425,000
|
|
Inventory
|
28,000
|
21,000
|
7,000
|
|
Salaries expense
|
135,000
|
|
Equipment
|
180,000
|
154,000
|
21,000
|
|
Depreciation expense
|
18,000
|
|
Accum. depreciation
|
(46,000)
|
(42,000)
|
1,000
|
|
Interest expense
|
3,500
|
|
Accounts payable
|
25,400
|
36,400
|
(11,000)
|
|
Loss on sale of equipment
|
3,000
|
|
Unearned revenue
|
16,200
|
21,200
|
(5,000)
|
|
Income taxes expense
|
44,000
|
|
Accrued salaries
|
7,000
|
8,800
|
(1,800)
|
|
Net income
|
$221,500
|
|
Taxes payable
|
11,600
|
8,000
|
3,600
|
|
|
|
|
Long-term notes pay.
|
37,000
|
55,000
|
(18,000)
|
|
|
|
|
Common stock
|
90,000
|
28,000
|
62,000
|
|
|
|
|
Retained earnings
|
50,600
|
32,400
|
18,200
|
|
|
|
Calculate cash flows from operations using the indirect method for 2013.