Kate Petusky prepared Addison Controls' balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison's president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made:
Addison Controls
Income Statement
For the Year Ended December 31, 2013 |
| Sales revenue |
$ 127,900 |
| Cost of goods sold |
70,210 |
| Gross margin |
57,690 |
| Selling expense |
$13,080 |
| Administrative expense |
8,130 |
| Salaries expense |
20,460 |
| Depreciation expense |
1,970 |
| Interest expense |
4,060 |
47,700 |
| Income before gain and taxes |
9,990 |
| Gain on sale of Land |
904 |
| Income tax expense |
810 |
| Net income |
$ 10,084 |
Addison Controls
Comparative Balance Sheets
As of December 31 |
| 2013 |
2012 |
| Cash |
$ |
5,310 |
$ |
4,220 |
| Accounts receivable, net |
6,480 |
5,570 |
| Inventory |
31,910 |
34,340 |
| Total current assets |
43,700 |
44,130 |
| Property, plant, & equipment, net |
211,500 |
215,350 |
| Total Assets |
$ |
255,200 |
$ |
259,480 |
| Accounts payable |
$ |
3,400 |
$ |
6,070 |
| Accrued expenses |
2,410 |
2,480 |
| Taxes payable |
2,100 |
2,650 |
| Bonds payable |
60,180 |
50,220 |
| Total liabilities |
68,090 |
61,420 |
| Common stock |
125,280 |
125,280 |
| Retained earnings |
61,830 |
72,780 |
| Total stockholders' equity |
187,110 |
198,060 |
| Total liabilities & stockholders' equity |
$ |
255,200 |
$ |
259,480 |
| • |
Equipment with an original cost of $35,090 was sold for $20,364. The book value of the equipment was $19,460. |
| • |
On June 1, 2013, the company purchased new equipment for cash at a cost of $17,580. |
| • |
At the end of the year the company issued bonds payable for $9,960 cash. The bonds will mature on December 31, 2017. |
| • |
The company paid $21,034 in cash dividends for the year. |
Using the indirect method, prepare Addison Controls' statement of cash flows for 2013. (If an amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).)