Prepare the statement of cash flows of wright company for

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Reference no: EM13483222

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY Comparative Balance Sheets December 31, 2013 and 2012 ($ in 000s)
	2013		2012
Assets
Cash	$	109	$	70
Accounts receivable		110		115
Short-term investment		52		24
Inventory		115		110
Land		82		100
Buildings and equipment		615		480
Less: Accumulated depreciation		(163)		(115)

	$	920	$	784

Liabilities
Accounts payable	$	35	$	43
Salaries payable		6		8
Interest payable		7		5
Income tax payable		7		11
Notes payable		0		27
Bonds payable		234		180
Shareholders' Equity
Common stock		355		280
Paid-in capital-excess of par		161		140
Retained earnings		115		90

	$	920	$	784

WRIGHT COMPANY Income Statement For Year Ended December 31, 2013 ($ in 000s)
Revenues
Sales revenue			$	460
Expenses
Cost of goods sold	$	210
Salaries expense		67
Depreciation expense		48
Interest expense		17
Loss on sale of land		4
Income tax expense		64		410

Net income			$	50

Additional information from the accounting records:
a.	Land that originally cost $18,000 was sold for $14,000.
b.	The common stock of Microsoft Corporation was purchased for $28,000 as a short-term investment not classified as a cash equivalent.
c.	New equipment was purchased for $135,000 cash.
d.	A $27,000 note was paid at maturity on January 1.
e.	On January 1, 2013, bonds were sold at their $54,000 face value.
f.	Common stock ($75,000 par) was sold for $96,000.
g.	Net income was $50,000 and cash dividends of $25,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income with cash flows from operating activities.)(Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM13483222

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