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The Airport Shuttle Services Inn provides the following balance sheet, income statement and other information.
Use this information to complete a Statement of Cash Flows using the Indirect Method.
Airport Shuttle Services: Balance Sheets 12/31
| | 20X1 | 20X2 |
| ASSETS | | |
| Cash | $ 34,000 | $ 56,000 |
| Accounts Receivable | 30,000 | 20,000 |
| Prepaid Expenses | 0 | 4,000 |
| Land | 0 | 130,000 |
| Building | 0 | 160,000 |
| Equipment | 10,000 | 27,000 |
| Accumulated Depreciation | 0 | (14,000) |
| | | |
| Total Assets | $ 74,000 | $ 383,000 |
| | | |
| LIABILITIES AND EQUITIES | | |
| Accounts Payable | $ 4,000 | $ 59,000 |
| Bonds Payable | 0 | 130,000 |
| Common Stock | 50,000 | 50,000 |
| Retained Earnings | 20,000 | 144,000 |
| | | |
| Total Liabilities and Equities | $ 74,000 | $ 383,000 |
Airport Shuttle Services: Income Statement 12/31
| Revenues | | $ 507,000 |
| Operating Expenses | $ 261,000 | |
| Depreciation Expenses | 15,000 | |
| Loss on Sale of Equipment | 3,000 | |
| Total Expenses | | 279,000 |
| | | |
| Operating Income | | 228,000 |
| Income Taxes | | 89,000 |
| Net Income | | $ 139,000 |
Airport Shuttle Services: Additional Information
- The company declared and paid a $ 15,000 cash dividend.
- The company obtained land through the issuance of $ 130,000 in long-term bonds.
- A building costing $ 160,000 was purchased with cash.
- Equipment costing $ 25,000 was purchased with cash.
- The company sold equipment with a book value of $ 7,000 (cost was $ 8,000 with accumulated depreciation of $ 1,000) for cash of $ 4,000.
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