20.) Statement of Cash Flows (Indirect Method) The Dairy Companys income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow:

Sales Revenue		$700,000
Cost of Goods Sold	$400,000
Wages and Other Operating Expenses	95,000
Depreciation Expense	22,000
Goodwill Amortization Expense	7,000
Interest Expense	10,000
Income Tax Expense	36,000
Loss on Bond Retirement	5,000	615,000
Net Income		$85,000

Assets
Cash	$27,000	$18,000
Accounts Receivable	53,000	48,000
Inventory	103,000	109,000
Prepaid Expenses	12,000	10,000
Plant Assets	360,000	336,000
Accumulated Depreciation	(87,000)	(84,000)
Goodwill	43,000	50,000
Total Assets	$511,000	$487,000
Liabilities and Stockholders Equity
Accounts Payable	$32,000	$26,000
Interest Payable	4,000	7,000
Income Tax Payable	6,000	8,000
Bonds Payable	60,000	120,000
Common Stock	252,000	228,000
Retained Earnings	157,000	98,000
Total Liabilities and Stockholders Equity	$511,000	$487,000

During the year, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. New equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable. Bonds payable of $120,000 were retired for cash at a loss. A $26,000 cash dividend was declared and paid. All stock issuances were for cash. Required a. Compute the change in cash that occurred in 2013. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 $AnswerAnswerIncreaseDecrease

b.

Cash Flow from Operating Activities
Net Income		$Answer
Add (deduct) items to convert net income to cash basis
Depreciation		Answer
Goodwill Amortization		Answer
Loss on Bond Retirement		Answer
Accounts Receivable	AnswerIncreaseDecrease	Answer
Inventory	AnswerIncreaseDecrease	Answer
Prepaid Expenses	AnswerIncreaseDecrease	Answer
Accounts Payable	AnswerIncreaseDecrease	Answer
Interest Payable	AnswerIncreaseDecrease	Answer
Income Tax Payble	AnswerIncreaseDecrease	Answer
Cash Flow Provided by Operating Activities		Answer
Cash Flow from Investing Activities
Sale of Equipment		Answer
Cash Provided by Investing Activities		Answer
Cash Flow from Financing Activities
Retirement of Bonds Payable		Answer
Issuance of Common Stock		Answer
Payment of Dividends		Answer
Cash Used by Financing Activities		Answer
NetAnswerIncreaseDecreasein Cash	Answer
Cash at Beginning of Year		Answer
Cash at End of Year		$Answer