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Prepare addison controls statement of cash flows

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Reference no: EM131757587

Kate Petusky prepared Addison Controls' balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison's president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made:

Addison Controls
Income Statement
For the Year Ended December 31, 2013
Sales revenue $ 127,900
Cost of goods sold 70,210
  Gross margin 57,690
Selling expense $13,080
Administrative expense 8,130
Salaries expense 20,460
Depreciation expense 1,970
Interest expense 4,060 47,700
Income before gain and taxes 9,990
Gain on sale of Land 904
Income tax expense 810
  Net income $ 10,084

 

Addison Controls
Comparative Balance Sheets
As of December 31
2013 2012
Cash $ 5,310 $ 4,220
Accounts receivable, net 6,480 5,570
Inventory 31,910 34,340
  Total current assets 43,700 44,130
Property, plant, & equipment, net 211,500 215,350
  Total Assets $ 255,200 $ 259,480
Accounts payable $ 3,400 $ 6,070
Accrued expenses 2,410 2,480
Taxes payable 2,100 2,650
Bonds payable 60,180 50,220
  Total liabilities 68,090 61,420
Common stock 125,280 125,280
Retained earnings 61,830 72,780
  Total stockholders' equity 187,110 198,060
Total liabilities & stockholders' equity $ 255,200 $ 259,480

 

• Equipment with an original cost of $35,090 was sold for $20,364. The book value of the equipment was $19,460.
• On June 1, 2013, the company purchased new equipment for cash at a cost of $17,580.
• At the end of the year the company issued bonds payable for $9,960 cash. The bonds will mature on December 31, 2017.
• The company paid $21,034 in cash dividends for the year.

Using the indirect method, prepare Addison Controls' statement of cash flows for 2013. (If an amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).)

Reference no: EM131757587

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