60.1K

Verified Solution

Link Copied!

The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:

		Dec. 31, 2014		Dec. 31, 2013
Assets
Cash		$88,370		$107,960
Accounts receivable (net)		135,790		145,530
Merchandise inventory		193,990		180,380
Prepaid expenses		7,900		5,470
Equipment		395,160		323,180
Accumulated depreciation-equipment		(102,740)		(79,260)
	Total	$718,470		$683,260
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$150,880		$142,800
Mortgage note payable		0		204,980
Common stock, $1 par		22,000		14,000
Paid-in capital in excess of par-common stock		313,000		193,000
Retained earnings		232,590		128,480
	Total	$718,470		$683,260

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:

Net income, $266,520.

Depreciation reported on the income statement, $50,300.

Equipment was purchased at a cost of $98,800, and fully depreciated equipment costing $26,820 was discarded, with no salvage realized.

The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.

8,000 shares of common stock were issued at $16 for cash.

Cash dividends declared and paid, $162,410.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.

Answer & Explanation Solved by verified expert

See Answer