Reference no: EM131809237

Problem

A comparative balance sheet for Century Company appears below:

Century COMPANY

Comparative Balance Sheet

                                                                          Dec. 31, 2015          Dec. 31, 2014

Assets

Cash                                                                   $  29,000                $10,000

Accounts receivable                                              18,000                    14,000

Inventory                                                            27,000                    18,000

Prepaid expenses                                                 6,000                      9,000

Long-term investments                                        -0-                          18,000

Equipment                                                          60,000                     32,000

Accumulated depreciation-equipment                     (18,000)                   (14,000)

Total assets                                                        $122,000                  $87,000

Liabilities and Stockholders' Equity

Accounts payable                                                 $  17,000                 $  7,000

Bonds payable                                                     37,000                     47,000

Common stock                                                    40,000                     23,000

Retained earnings                                                28,000                     10,000

Total liabilities and stockholders' equity                  $122,000                  $87,000

Additional information:

1. Net income for the year ending December 31, 2015 was $30,000.

2. Cash dividends of $12,000 were declared and paid during the year.

3. Long-term investments that had a cost of $18,000 were sold for $16,000.

4. Sales for 2015 were $150,000.

Instructions

Prepare a statement of cash flows for the year ended December 31, 2015, using the indirect method.