Here are comparative balance sheets for Doherty Company.
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Doherty Company
Comparative Balance Sheets
December 31, 2013
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Assets
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2013
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2012
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Cash
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$ 33,000
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$10,000
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Accounts receivable
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18,000
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14,000
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Inventories
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25,000
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18,000
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Prepaid expenses
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6,000
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9,000
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Long-term investments
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0
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18,000
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Equipment
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60,000
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32,000
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Accumulated depreciation-Equipment
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(20,000)
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(14,000)
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Total assets
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$ 122,000
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$ 87,000
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Liabilities and Stockholder's Equity
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Accounts payable
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$ 17,000
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$ 7,000
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Bonds payable
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37,000
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47,000
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Common stock ($1 par)
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40,000
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23,000
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Retained earnings
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28,000
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10,000
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Total liabilities and stockholder's equity
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$ 122,000
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$ 87,000
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Additional information:
1. The 2013 Income Statement reported $6,000 in depreciation expense, a $4,000 loss on sale of investments and Net income of $33,000.
2. Cash dividends of $15,000 were declared and paid.
3. Long-term investments that has a cost of $18,000 were sold for $14,000
4. Purchase equipment for cash for $28,000.
5. Issue common stock for $17,000 cash.
6. Redeem bonds payable for $10,000 cash
Instructions: Prepare a statement of cash flows for 2013 using the indirect method.
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Doherty Company
Statement of Cash Flows
For the Year Ended December 31, 2013
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Adjustments to reconcile net income to net cash provided by operating activities
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