Reference no: EM131057571
A comparative balance sheet for Halpern Corporation is presented below:
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HALPERN CORPORATION
Comparative Balance Sheet
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Assets
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2013
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2012
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|
Cash
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$ 36,000
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$ 31,000
|
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Accounts receivable (net)
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70,000
|
60,000
|
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Prepaid insurance
|
25,000
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17,000
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Land
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18,000
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40,000
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Equipment
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70,000
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60,000
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Accumulated depreciation
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(20,000)
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(13,000)
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Total Assets
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$ 199,000
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$ 195,000
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Liabilities and Stockholders' Equity
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|
|
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Accounts payable
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$ 11,000
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$ 6,000
|
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Bonds payable
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27,000
|
19,000
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Common stock
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140,000
|
115,000
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Retained earnings
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21,000
|
55.000
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Total liabilities and stockholders' equity
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$.199,000
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$195,0.00
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Additional information:
1. Net loss for 2013 is $20,000.
2. Cash dividends of $14,000 were declared and paid in 2013.
3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $22,000 of bonds was retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000.
Instructions
Prepare a statement of cash flows for the year ended 2013, using the indirect method.