Reference no: EM131819684

Problems: Financial data of Fancy Footwork Company for 2013 and 2012 are presented below.

FANCY FOOTWORK COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2013 AND 2012

2013 2012

Cash $ 260,000 $ 230,000

Receivables $ 156,000 $ 120,000

Inventory $ 180,000 $ 220,000

Plant assets $ 160,000 $ 135,000

Accumulated depreciation $ (80,000) $ (76,000)

Long-term investments (held-to-maturity) $ 80,000 $ 93,000

$ 756,000 $ 722,000

Accounts payable $ 135,000 $ 122,000

Accrued liabilities $ 30,000 $ 33,100

Bonds payable $ 135,000 $ 166,000

Common stock $ 180,000 $ 165,000

Retained earnings $ 276,000 $ 235,900

$ 756,000 $ 722,000

FANCY FOOTWORK COMPANY INCOME STATEMENT For the year ended Dec 31, 2013

Sales 750000

Cost of Goods Sold 530000

Gross Margin 220000

Selling and administrative expenses 106000

Income from Operations 114000

Other revenues and gains

Gain on sale of investments 7000

Income before tax 121000

Income tax expense 48400

Net Income 72600

Additional information: During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500.

Required - Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)