The income statement and selected balance sheet information for Fudnuddler Corporation for the year ended December 31, 2014 is presented below.
| Income Statement |
| Sales Revenue |
$ |
300,000 |
|
| Gain on Sale of Equipment |
|
25,000 |
|
| Expenses: |
|
|
|
| Cost of Goods Sold |
|
180,000 |
|
| Depreciation Expense |
|
20,000 |
|
| Salaries Expense |
|
30,000 |
|
| Rent Expense |
|
12,000 |
|
| Insurance Expense |
|
12,000 |
|
| Interest Expense |
|
11,000 |
|
| Utilities Expense |
|
10,000 |
|
|
|
|
|
| Net Income |
$ |
50,000 |
|
|
|
|
|
|
| Selected Balance Sheet Accounts |
|
2013 |
2014 |
| Accounts Receivable |
|
15,000 |
|
|
10,000 |
|
| Merchandise Inventory |
|
20,000 |
|
|
22,000 |
|
| Prepaid Rent |
|
1,000 |
|
|
0 |
|
| Accounts Payable |
|
11,000 |
|
|
14,000 |
|
| Salaries Payable |
|
2,000 |
|
|
3,000 |
|
|
|
Prepare the cash flows from operating activities section of the 2014 statement of cash flows using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)
|