Prepare the spartan inn scf

Question

Additional information:     

				Spartan Inn
				Condensed Balance Sheets
				December 31, 2001 and 2002
Assets					2001	2002
Current Assets
Cash					$30,000	$40,000
Marketable securities					50000	50000
Accounts receivable					100000	95000
Inventories					20000	25000
Total current assets					200000	210000
Investments					100000	60000
Property and Equipment
Land					500000	500000
Building					5000000	6000000
Equipment					1000000	1100000
Accumulated depreciation					-1600000	-2000000
Net property and equipment					4900000	5600000
Total Assets					$5,200,000	$5,870,000
Liabilities and Owners' Equity
Current Liabilities
Accounts payable					$60,000	$70,000
Dividends payable					30000	50000
Current portion of LTD					100000	130000
Total					190000	250000
Long-term debt					4000000	4370000
Capital stock					700000	700000
Retained earnings					310000	550000
Total Liabilities and Owners' Equity					$5,200,000	$5,870,000

 

			Spartan Inn
			Condensed Income Statement
			For the year ended December 31,2002
Sales				$6,000,000
Cost of sales				1000000
Gross profit				5000000
Depreciation				400000
Other expenses(except depreciation)				4500000
Net operating income				100000
Gain on sales of investments				300000
Income taxes				110000
Net income				$290,000

1. Dividends declared during 2002 totaled $50000.

2. No investments were purchased during 2002.

3. The current portion of long-term debt at the end of 2002 was reclassified from noncurrent during 2002.

4. No equipment or building were sold during 2002.

5. Long-term debt was borrowed to partially finance the building purchase.                       
                       
REQUIRED: Prepare the Spartan Inn's SCF for 2002 using the indirect method.