Reference no: EM131800522
Problem 2. Below is comparative balance sheet information for C.D. Schmuck Industries (in $000's) at December 31:
2014 2013
Assets
Cash $ 7,350 $ 2,200
Accounts Receivable 2,500 2,200
Inventory 4,000 3,000
Prepaid Rent 150 300
Plant and Equipment 14,500 12,000
Accumulated Depreciation (5,100) (4,500)
Total Assets $ 23,400 $15,200
Liabilities and Equity
Accounts Payable $ 1,400 $ 1,100
Interest Payable 100 0
Unearned Income 800 600
Income Taxes Payable 550 800
Note Payable 5,000 0
Common Stock 10,000 10,000
Retained Earnings 5,550 2,700
Total Liabilities and Equity $23,400 $15,200
The income statement information for C.D. Schmuck Industries (in $000's) for the year ended December 31, 2014 is listed below:
Sales $ 17,650
Cost of Goods Sold $ 7,200
Selling and Administrative Expenses 4,100
Operating Income 6,350
Income Tax Expense 2,500
Net Income $ 3,850
Also note:
1. Depreciation of $1,600 is included in administrative expenses.
2. Equipment costing $ 4,000 was acquired for cash and other equipment with a book value of $500 was sold for $500.
3. Cash dividends of $1,000 were paid.
Required:
Prepare in good form a cash flow statement for the year ended December 31, 2014 utilizing the indirect method.