Presented below are the 2013 income statement and comparative balance sheet information for Siegfried & Royce (S&G).
|
Siegfried & Royce
Income Statement
For the Year Ended December 31, 2013
|
|
($ in thousands)
|
|
|
Sales revenue
|
|
$12,500 |
| Operating expenses: |
|
|
| Cost of goods sold |
$7,300 |
|
|
Depreciation
|
400
|
|
|
Rent
|
250
|
|
|
Administrative and other
|
2.200
|
|
|
Total operating expenses
|
|
10.150
|
|
Income before income taxes
|
|
2,350
|
|
Income tax expense
|
|
940
|
|
Net income
|
|
$ 1.410
|
|
Balance Sheet information ($ in thousands)
|
Dec. 31, 2013
|
Dec. 31, 2012
|
|
|
Assets:
|
|
|
|
|
Cash
|
$3,280
|
$1,300
|
|
|
Accounts receivable
|
1,250
|
980
|
|
|
Inventory
|
980
|
900
|
|
|
Prepaid rent
|
150
|
100
|
|
|
Plant & equipment
|
3,000
|
2,600
|
|
|
Less: Accumulated depreciation
|
(1,200)
|
_(840
|
|
|
Total assets
|
$7.460
|
$5,080
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
Accounts payable
|
$ 500
|
$ 580
|
|
|
Payables for administrative and other expenses
|
650
|
700
|
|
|
Income taxes payable
|
450
|
350
|
|
|
Note payable (due 12/31/2014)
|
2,500
|
2,000
|
|
|
Common stock
|
1,500
|
1,000
|
|
|
Retained earnings
|
1.860
|
450
|
|
|
10.40
|
$5.080
|
|
|
Total liabilities and shareholders' equity
|
|
Required:
1. Prepare S&G's 2013 statement of cash flows, using the indirect method to present cash flows from operating activities.