Question
Condensed financial data of Fulton Corp. for 2014 and 2013 are presented below. FULTON CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31 2014 2013
Condensed financial data of Fulton Corp. for 2014 and 2013 are presented below.
FULTON CORP. | ||||
COMPARATIVE BALANCE SHEET | ||||
AS OF DECEMBER 31 | ||||
|
| – | 2014 | 2013 |
Cash |
|
| $ 800 | $600 |
Investments |
|
| –0– | 200 |
Receivables |
|
| 2,250 | 2,100 |
Inventory |
|
| 1,600 | 1,200 |
Plant assets |
|
| 1,600 | 1,200 |
Accumulated depreciation |
|
| (600) | (455) |
|
| Total Assets | $5,650 | $4,845 |
Accounts payable |
|
| $750 | $1,200 |
Accrued liabilities |
|
| 330 | 520 |
Bonds payable |
|
| 800 | 1,000 |
Capital stock |
|
| 1,500 | 1,400 |
Retained earnings |
|
| 2,270 | 725 |
|
| Total Liabilities & Equity | $5,650 | $4,845 |
FULTON CORP. | |
INCOME STATEMENT | |
FOR THE YEAR ENDED DECEMBER 31,2014 | |
Sales | $15,200 |
Cost of goods sold | 10,400 |
Gross margin | 4,800 |
|
|
Selling and administrative expense | 1,205 |
Income from operations | 3,595 |
Other revenues and gains |
|
Loss on sale of investments | 50 |
Income before income tax | 3,545 |
Income tax expense | 1,400 |
|
|
Net income | 2,145 |
Cash dividends | 600 |
Income retained in business | $1,545 |
Additional information:
During the year, $100 of common stock was issued exchange for land. No plant assets were sold in 2014.
Instructions:
Prepare a statement of cash flows using the indirect method.
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