The 2013 income statement reported 6000 in depreciation

Reference no: EM13485324

Here are comparative balance sheets for Doherty Company.

Doherty Company Comparative Balance Sheets December 31, 2013
Assets	2013	2012
Cash	$ 33,000	$10,000
Accounts receivable	18,000	14,000
Inventories	25,000	18,000
Prepaid expenses	6,000	9,000
Long-term investments	0	18,000
Equipment	60,000	32,000
Accumulated depreciation-Equipment	(20,000)	(14,000)
Total assets	$ 122,000	$ 87,000

Liabilities and Stockholder's Equity
Accounts payable	$ 17,000	$ 7,000
Bonds payable	37,000	47,000
Common stock ($1 par)	40,000	23,000
Retained earnings	28,000	10,000
Total liabilities and stockholder's equity	$ 122,000	$ 87,000

Additional information:
1. The 2013 Income Statement reported $6,000 in depreciation expense, a $4,000 loss on sale of investments and Net income of $33,000.
2. Cash dividends of $15,000 were declared and paid.
3. Long-term investments that has a cost of $18,000 were sold for $14,000
4. Purchase equipment for cash for $28,000.

5. Issue common stock for $17,000 cash.

6. Redeem bonds payable for $10,000 cash

Instructions: Prepare a statement of cash flows for 2013 using the indirect method.

Doherty Company Statement of Cash Flows For the Year Ended December 31, 2013


Adjustments to reconcile net income to net cash provided by operating activities

Reference no: EM13485324

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