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1. A. Selected financial statement information and additional data for Company ABC. is presented below: December 31 2013 2014 Cash.......................................................... $52,000 $65,000 Accounts receivable (net)............................

1. A. Selected financial statement information and additional data for Company ABC. is presented below:

December 31

2013 2014

Cash.......................................................... $52,000 $65,000

Accounts receivable (net)............................ 84,000 144,200

Inventory................................................... 158,000 206,600

Land.......................................................... 58,800 21,000

Equipment................................................. 504,000 789,600

TOTAL............................................ $856,800 $1,226,400

Accumulated depreciation......................... $84,000 $115,600

Accounts payable....................................... 50,400 86,000

Notes payable - short-term.......................... 67,200 29,400

Notes payable - long-term........................... 168,000 302,400

Common stock........................................... 420,000 487,200

Retained earnings....................................... 67,200 205,800

TOTAL............................................ $856,800 $1,226,400

Additional data for 2014:

1. Net income is shown on the income statement below

3. Land was sold at its original cost.

4. Dividends of were paid.

5. Equipment was purchased

6. A long-term note was issued.

7. Common stock was issued.

Income Statement

For the year ended December 31, 2014

Sales revenue.. $1,200,000

Cost of goods sold 500,000

Gross profit 700,000

Selling and administrative expenses.. 360,000

Pre-tax operating income 340,000

Income taxes 119,800

Net income$220,200

a. Prepare a balance sheet in proper form. b. Prepare the statement of cash flow using the indirect method c. Prepare the statement of cash flow using the direct method

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