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1. Prepare the statement of cash flows for Webster Company for the year ended December 31, 2015. Use the indirect method.

Webster Company

Balance Sheet

At December 31

Assets	2015	2014
Cash	$24,640	$23,040
Accounts Receivable	32,180	28,900
Inventory	73,125	61,710
Long-term Investments	55,900	56,900
Equipment	175,500	145,500
Accumulated Depreciation	(33,550)	(31,200)
Total Assets	$327,795	$284,850
Liabilities
Accounts Payable	$65,000	$40,380
Income Tax Payable	10,725	10,200
Bonds Payable	48,750	66,000
Total Liabilities	$124,475	$116,580
Equity
Common Stock	$117,000	$96,000
Paid in Capital in Excess of Par	13,000	9,000
Retained Earnings	73,320	63,270
Total Equity	$203,320	$168,270
Total Liabilities & Equity	$327,795	$284,850

Webster Company

Income Statement

For the Year Ended, December 31, 2015

Sales		$240,000
Cost of Goods Sold	$80,900
Depreciation Expense	29,400
Other Operating Expenses	48,000
Interest Expenses	2,000	(160,300)
Other Gains(Losses)
Loss on Sale of Equipment		(8,400)
Income before Taxes		71,300
Income tax Expense		27,650
Net Income		$43,650

Additional Information:

1. There was no gain or loss on the sales of the long-term investments or on retirement of Bonds
2. Old Equipment with an original cost of $37,550 and accumulated depreciation of $27,050 was sold for cash.
3. New Equipment was purchased for cash.
4. Cash dividends were declared and paid during the year.
5. Additional shares of stock were issued for cash

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