Comparative balance sheet data for Tanzanite Imporium follow. In addition, new equipment was purchased for $60,000, payment

Question:

Comparative balance sheet data for Tanzanite Imporium follow. In addition, new equipment was purchased for $60,000, payment consisting of $40,000 cash and a long-term note for $20,000. The short-term note payable was arranged with a supplier to finance inventory purchases on credit. Cash dividends of $15,000 were paid in 2013; all other changes to retained earnings were caused by the net income for 2013, which amounted to $92,200.

................................................................. Dec. 31, 2013 ............. Dec. 31, 2012

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,000 .................. $ 33,000

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000 ...................... 77,000

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,700 .................... 131,000

Property, plant, and equipment . . . . . . . . . . . . . . . . . . . . . 560,000 ................... 500,000

Accumulated depreciation - property, plant, and equipment. . (231,500) ......... (210,000)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,200 ............ $ 531,000

Short-term notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . $ - .................... $ 30,000

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,000 ................... 69,000

Long-term notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000 .................. 90,000

Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 .................. 120,000

Common stock, $1 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000 ................... 35,000

Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,000 ................ 165,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,200 .................. 22,000

Total liabilities and stockholders' equity . . . . . . . . . . . . . . . $ 550,200 ............ $ 531,000

Instructions:

Prepare a statement of cash flows for the year ended December 31, 2013, using the indirect method?

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...