Prepare a statement of cash flows for sullivan corp for the

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Reference no: EM13584302

The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2014 and 2013, with a column showing the increase (decrease) from 2013 to 2014.

COMPARATIVE BALANCE SHEETS
	2014		2013		Increase (Decrease)
Cash	$815,120		$700,410		$114,710
Accounts receivable	1,128,400		1,168,300		(39,900	)
Inventory	1,850,700		1,714,800		135,900
Property, plant, and equipment	3,306,600		2,966,600		340,000
Accumulated depreciation	(1,164,700	)	(1,039,700	)	(125,000	)
Investment in Myers Co.	310,870		275,060		35,810
Loan receivable	250,210		-		250,210
Total assets	$6,497,200		$5,785,470		$711,730

Accounts payable	$1,014,100		$955,400		$58,700
Income taxes payable	29,080		50,880		(21,800	)
Dividends payable	80,930		99,860		(18,930	)
Lease liabililty	400,950		-		400,950
Common stock, $1 par	500,100		500,100		-
Paid-in capital in excess of par-common stock	1,499,100		1,499,100		-
Retained earnings	2,972,940		2,680,130		292,810
Total liabilities and stockholders' equity	$6,497,200		$5,785,470		$711,730

Additional information:

1.		On December 31, 2013, Sullivan acquired 25% of Myers Co.'s common stock for $275,060. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,240. Myers reported income of $143,240 for the year ended December 31, 2014. No dividend was paid on Myers's common stock during the year.
2.		During 2014, Sullivan loaned $300,330 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,120, plus interest at 10%, on December 31, 2014.
3.		On January 2, 2014, Sullivan sold equipment costing $60,950, with a carrying amount of $36,940, for $39,670 cash.
4.		On December 31, 2014, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,950, which equals the fair value of the building. Sullivan made the first rental payment of $59,090 when due on January 2, 2015.
5.		Net income for 2014 was $373,740.
6.		Sullivan declared and paid cash dividends for 2014 and 2013 as shown below.

	2014	2013
Declared	December 15, 2014	December 15, 2013
Paid	February 28, 2015	February 28, 2014
Amount	$80,930	$99,860

Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2014, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Reference no: EM13584302

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