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Scenic had no noncash investing and financing transactions for 2013. During the year, Scenic sold equipment for $15,100 which
had orginally cost $12,700 and had a book value of $10,700.
Scenic did not issue any notes payable during the year. Scenic did issue common stock for $30,000.					ANSWER:
					Enter the appropriate accounts/names and numbers in the yellow boxes- INDIRECT METHOD
Scenic Industries, Inc.					Scenic Industries, Inc.
Income Statement					Statement of Cash Flows
December 31, 2013
Sales revenue		$347,000
Cost of goods sold		78,000			Cash flows from operating activities:
Gross profit		$269,000			Net income
Operating expenses:					Adjustments to reconcile net income to net cash provided by operating activities:
Salaries expense	$26,500
Depreciation expense	4,900
Other operating expenses	12,500	43,900
Operating Income		$225,100
Other incomes and expenses:
Gain on Sale of equipment	$4,400
Interest expense	9,900	5,500
Income before taxes		$219,600
Income tax expense		(36,600)
Net Income		$183,000
					Net cash provided by operating activities
					Cash flows from investing activities:
Scenic Industries, Inc.
Balance Sheets
For Years ended December 31, 2012 and 2013
Assets	2013	2012			Net cash used for investing activities
Current Assets:
Cash and cash equivalents	$50,000	$23,500			Cash flows from financing activities:
Accounts receivable	32,100	29,100
Inventory	86,000	93,300
Prepaid insurance	3,300	2,800
Total current assets:	$171,400	$148,700			Net cash used for financing activities
Property, plant & equipment	153,000	136,000
Less: Accumulated depreciation	(30,000)	(27,100)
Investments	113,000	-			Cash balance, December 31, 2013
Total Assets	$407,400	$257,600
Liabilities
Current Liabilities:
Accounts payable (Inventory purchases)	$33,200	$36,500
Salaries payable	2,900	7,400
Interest payable	2,400	-
Taxes payable	5,300	-
Other accrued operating expenses	18,800	22,100
Total current liabilities	62,600	66,000
Bonds Payable	78,000	113,000
Total Liabilities	140,600	179,000
Stockholders' Equity
Common stock	107,000	77,000
Retained earnings	159,800	1,600
Total stockholders' equity	266,800	78,600
Total liabilites and equity	$407,400	$257,600

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