Here are comparative balance sheets for Vanity Company. Prepare a statement of cash flows for 2014 using the indirect method.
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Vanity Company Comparative Balance Sheets December 31
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Assets
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2014
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2013
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Cash
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$ 63,000
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$ 22,000
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Accounts receivable
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85,000
|
76,000
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Inventory
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170,000
|
189,000
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Land
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75,000
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100,000
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Equipment
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270,000
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200,000
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Accumulated depreciation-equipment
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(66,000)
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(32,000)
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Total
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$597,000
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$555,000
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Liabilities and Stockholders' Equity
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|
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Accounts payable
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$ 39,000
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$ 47,000
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Bonds payable
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150,000
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200,000
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Common stock ($1 par)
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216,000
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174,000
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Retained earnings
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192,000
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134,000
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Total
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$597,000
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$555,000
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Additional information:
1. Net income for 2014 was $93,000.
2. Cash dividends of $35,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2014, but land was sold at cost.