From the financial statements and additional information provided in Problem 16A-1 for Dent Corporation, prepare a statement of cash flows using the direct method.

In Problem 16A-1

From the following income statement (Figure 16-16), balance sheet (Figure 16-17), and additional data (below) for Dent Corporation, prepare a statement of cash flows using the indirect method.

Additional Data:

1. All Plant and Equipment was purchased for cash.

2. Sold additional 2,500 shares of stock for cash of $2,500.

3. A $1,400 dividend was declared and paid.

4. Short-term notes used to finance inventory.

DENT CORPORATION
INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2013

DENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2013 AND 2012

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Sales Cost of Goods Sold Gross Profit 965000 6910000 $2740000 Operating Expenses: Rent Expense Amortization Expense Salary Expense Miscellaneous Expense $ 750000 700000 660000 320000 Total Operating Expenses Net Income 2430000 10000 Assets 2013 2012 Current Assets: Cash Accounts Receivable. Net Merchandise Inventory Prepaid Rent 340000260000 5600 0 450000 2200 00 200000 1000 001200 00 $1220000 $1030o000 Total Current Assets Plant and Equipment: Store Equipment Accum. Amort., Store Equipment $5800000 $5000000 00000 6000 $46000oo $4500 ooo $58200 00 $5530000 Total Plant and Equipment Total Assets Liabilities Current Liabilities: Notes Payable-Short Term Accounts Payable $680000 5200 00 4400 00 480000 $1120000 $1000000 Total Current Liabilities Long-Term Liabilities: Bonds Payable $1250000 $1500000 Total Liabilities Shareholders' Equity Common Shares Retained Earnings $2 250000 $2000000 1200000 10300 00 $3450000 $3030000 $5820000 $5530000 Total Shareholders' Equity Total Liabilities and Shareholders' Equity