Condensed financial data of Turner Inc. follow. TURNER INC. Comparative Balance Sheets December 31 Assets 2014 2013

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Condensed financial data of Turner Inc. follow.

TURNER INC.

Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 37,000 $ 33,000 Accounts receivable 57,000 41,000 Inventories 45,000 48,000 Prepaid expenses 17,000 14,000 Investments 162,000 130,000 Plant assets 580,000 520,000 Accumulated depreciation (211,000) (180,000)

Total $687,000 $606,000 Liabilities and Stockholders’ Equity Accounts payable $ 44,000 $ 51,000 Accrued expenses payable 21,000 15,000 Bonds payable 180,000 220,000 Common stock 175,000 150,000 Retained earnings 267,000 170,000 Total $687,000 $606,000 TURNER INC.

Income Statement Data For the Year Ended December 31, 2014 Sales revenue $610,000 Less:

Cost of goods sold $290,000 Operating expenses, excluding depreciation 65,000 Depreciation expense 50,000 Income tax expense 47,000 Interest expense 12,000 Loss on disposal of plant assets 9,000 473,000 Net income $137,000 Additional information:
1 New plant assets costing $90,000 were purchased for cash during the year.
2 Old plant assets having an original cost of $30,000 were sold for $2,000 cash.
3 Bonds matured and were paid off at face value for cash.
4 A cash dividend of $40,000 was declared and paid during the year.
Instructions Prepare a statement of cash flows using the indirect method.AppendixLO1

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