Condensed financial data of Minnie Hooper Company are shown below.
Minnie Hooper Company Comparative Balance Sheets December 31
Assets 2014 2013
Cash $ 93,600 $ 33,400
Accounts receivable 63,200 37,000
Inventory 124,500 102,650
Investments 79,500 107,000
Plant assets 318,000 205,000
Accumulated depreciation (44,000) (40,000)
Total $634,800 $445,050
|
Liabilities and Stockholders’ Equity |
||||
| Accounts payable | $ 56,600 | $ 48,280 | ||
| Accrued expenses payable | 15,100 | 18,830 | ||
| Bonds payable | 140,000 | 70,000 | ||
| Common stock | 250,000 | 200,000 | ||
| Retained earnings | 173,100 | 107,940 | ||
| Total | $634,800 | $445,050 | ||
Minnie Hooper Company Income Statement
For the Year Ended December 31, 2014
| Sales revenue | $297,500 | ||
| Less: | |||
| Cost of goods sold | $99,460 | ||
| Operating expenses, excluding | |||
| depreciation expense | 19,670 | ||
| Depreciation expense | 25,000 | ||
| Loss on disposal of plant assets | 5,000 | ||
| Income taxes | 37,270 | ||
| Interest expense | 2,940 | 189,340 | |
| Net income | $108,160 |
Additional information:
1. New plant assets costing $149,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 were sold for $10,000, resulting in a loss of $5,000.
4. A cash dividend of $43,000 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.
