Reference no: EM13534291

Statement of cash flows-indirect method

The comparative balance sheet of Juras Equipment Co. for December 31, 2013 and 2012, is as follows:

	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$ 99,840	$ 67,680
Accounts receivable (net)	292,560	265,680
Inventories	421,440	409,200
Investments	0	144,000
Land	417,600	0
Equipment	619,200	505,440
Accumulated depreciation	(139,920)	(119,040)
	$1,710,720	$1,272,960
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 290,400	$ 274,080
Accrued expenses payable (operating expenses)	43,200	37,920
Dividends payable	36,000	28,800
Common stock, $1 par	162,000	144,000
Paid-in capital in excess of par-common stock	594,000	288,000
Retained earnings	585,120	500,160
	$1,710,720	$1,272,960

The following additional information was taken from the records of Juras Equipment:

a. Equipment and land were acquired for cash.

b. There were no disposals of equipment during the year.

c. The investments were sold for $129,600 cash.

d. The common stock was issued for cash.

e. There was a $228,960 credit to Retained Earnings for net income.

f. There was a $144,000 debit to Retained Earnings for cash dividends declared.

Instructions

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.