Burrow Mining Inc.s comparative balance sheet information at December 31, 2014 and 2013, and its income statement

Question:

Burrow Mining Inc.â€™s comparative balance sheet information at December 31, 2014 and 2013, and its income statement for the year ended December 31, 2014, are as follows:

Burrow Mining Inc. Comparative Balance Sheet Information Burrow Mining Inc. Income Statement December 31 Year Ended December 31, 2014 Net 2014 2013 Change Sales 5504,000 S 28,000 S 14,560 S 13,440 5,600 21,840 Cash Cost of goods sold. Gross profit. Operating expenses Depreciation expense. Loss on sale of equipment. 336,000

During 2014, the following transactions occurred:
1. Issued $14,000 of bonds payable at face value.
2. Sold the long-term investment on January 1, 2014, for $16,800.
3. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation.
4. Purchased equipment for $11,200 cash.

Required
a. How much was paid in dividends during 2014?
b. Prepare a statement of cash flows for Burrow Mining Inc. for the year ended December 31, 2014, using the indirect method.
Analysis Component: Accounts Receivable increased from $21,840 to $51,520 in 2014. What transactions cause this account to change? Accounts Payable decreased during 2014. What causes this account tochange?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...