Statement of cash flows-indirect method
The comparative balance sheet of Juras Equipment Co. for December 31, 2013 and 2012, is as follows:
|
Dec. 31, 2013
|
Dec. 31, 2012
|
|
Assets
|
|
|
|
Cash
|
$ 99,840
|
$ 67,680
|
|
Accounts receivable (net)
|
292,560
|
265,680
|
|
Inventories
|
421,440
|
409,200
|
|
Investments
|
0
|
144,000
|
|
Land
|
417,600
|
0
|
|
Equipment
|
619,200
|
505,440
|
|
Accumulated depreciation
|
(139,920)
|
(119,040)
|
|
$1,710,720
|
$1,272,960
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable (merchandise creditors)
|
$ 290,400
|
$ 274,080
|
|
Accrued expenses payable (operating expenses)
|
43,200
|
37,920
|
|
Dividends payable
|
36,000
|
28,800
|
|
Common stock, $1 par
|
162,000
|
144,000
|
|
Paid-in capital in excess of par-common stock
|
594,000
|
288,000
|
|
Retained earnings
|
585,120
|
500,160
|
|
$1,710,720
|
$1,272,960
|
The following additional information was taken from the records of Juras Equipment:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $129,600 cash.
d. The common stock was issued for cash.
e. There was a $228,960 credit to Retained Earnings for net income.
f. There was a $144,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.