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

In Problem 16B-1

From the following income statement (Figure 16-18), balance sheet (Figure 16-19), and additional data for Blumer Limited, prepare a statement of cash flows using the indirect method.

Additional Data:

1. All increases in Plant and Equipment were paid for in cash.

2. No dividend was declared in 2013.

3. Sold 2,000 shares of stock for cash of $2,000.

Office Equipment and Machinery are recorded at net on the balance sheet. Be sure to add back amortization expense to the cost of the assets in 2013 to compute the actual cost of the additional assets purchased.

BLUMER LIMITED

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2013

BLUMER LIMITED
BALANCE SHEET
DECEMBER 31, 2013 AND 2012

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Sales Cost of Goods Sold Gross Profit 3600000 25000001 $1100000 Operating Expenses Amortization Expense, Equipment Amortization Expense, Machinery Advertising Expense Salary Expense Miscellaneous Expense 50000 6000 1800 00 3600001 Total Operating Expenses Net Income 736000 364000 Assets 2013 2012 Current Assets: Cash Accounts Receivable, Net Merchandise Invento $ 20400054000 1000 320000 243000 92000 588000 8000 Total Current Assets Plant and Equipment: Office Equipment, Net Machinery, Net Land 03000 453000 03000 48000 $1204000 804000 18000 Total Plant and Equipment Total Assets Liabilities Current Liabilities: $ 208000 s 198000 10000 15000 $218000213000 Notes Payable-Short Term Accounts Payable Total Current Liabilities Long-Term Liabilities: Mortgage Payable Total Liabilities 212000 S 1 77000 Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $953000S753000 613000 249000 660 $19960 00 $1392000