Statement of Cash Flows-Indirect Method
The comparative balance sheet of Amelia Enterprises, Inc. At December 31, 2014 and 2013, is as follows:
Dec. 31, 2014 Dec. 31, 2013
Assets
Cash $63,820 $78,540
Accounts receivable (net) 98,070 105,880
Merchandise inventory 140,090 131,220
Prepaid expenses 5,710 3,980
Equipment 285,380 235,120
Accumulated depreciation-equipment (74,200) (57,660)
Total $518,870 $497,080
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $108,960 $103,890
Mortgage note payable 0 149,120
Common stock, $1 par 16,000 10,000
Paid-in capital in excess of par-common stock 230,000 140,000
Retained earnings 163,910 94,070
Total $518,870 $497,080
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
a.Net income, $178,790.
b.Depreciation reported on the income statement, $36,050.
c.Equipment was purchased at a cost of $69,770, and fully depreciated equipment costing $19,510 was discarded, with no salvage realized.
d.The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
e.6,000 shares of common stock were issued at $16 for cash.
f.Cash dividends declared and paid, $108,950.
Required:
Read more: The comparative balance sheet of Amelia Enterprises, Inc. At December 31, 2014 and 2013, is as follows?
