Condensed financial data of Jhutti Company appear below. Prepare a worksheet—indirect thod. Jhutti Company methoa Comparative Balance Sheets December 31

(LO 5)

Assets _ 2014 — _ 2013 Cash $ 90,300 $ 47,250 Accounts receivable 80,900 57,000 Inventory 121,900 102,650 Investments 84,000 87,000 Equipment 250,000 205,000 Accumulated depreciation—equipment (46,600) (40,000)

$580,500 $458,900 Liabilities and Stockholders’ Equity Accounts payable $ 53,400 $ 48,280 Accrued expenses payable 12,100 18,830 Bonds payable 100,000 70,000 Common stock 240,000 200,000 Retained earnings 175,000 121,790

$580,500 $458,900 Jhutti Company Income Statement For the Year Ended December 31, 2014 Sales revenue $297,500 Gain on disposal of plant assets 8,550 $306,050 Less:

Cost of goods sold 99,460 Operating expenses (excluding depreciation expense) 14,670 Depreciation expense 47,900 Income tax expense 270, Interest expense 2,940 172,240 Net income $133,810 Additional information:

1. Equipment costing $92,000 was purchased for cash during the year.

2. Investments were sold at cost.

3. Equipment costing $47,000 was sold for $14,250, resulting in gain of $8,550.

4. Acash dividend of $80,600 was declared and paid during the year.

Instructions Prepare a worksheet for the statement of cash flows using the indirect method. Enter the — Reconciling items total reconciling items directly in the worksheet columns, using letters to cross-reference each $580,910 entry.