Carlee Instruments

Income Statement

For the Year Ended December 31, 2014

Sales revenue. $131,710.

Cost of goods sold. 72,790.

Gross margin. 58,920.

Selling expense $12,880.

Administrative expense 7,760.

Salaries expense. 20,430.

Depreciation expense.1,530.

Interest expense. 3,910. 46,510.

Income before gain and taxes. 12,410.

Gain on sale of equipment. 840.

Income tax expense. 820.

Net income. $12,430.

Carlee Instruments

Comparative Balance Sheets

As of December 31

2014. 2013.

Cash . $6,120. $4,320

Accounts receivable, net . 6,700. 5,440.

Inventory. 32,120. 32,950.

Total current assets . 44,940. 42,710.

Property, plant, & equipment, net. 203,520. 204,740.

Total Assets . $248,460. $247,450.

Accounts payable. $3,430. $4,710.

Accrued expenses. 2,340. 2,100.

Taxes payable. 2,140. 2,660.

Note payable. 61,420. 51,360.

Total liabilities. 69,330. 60,830.

Common stock. 125,670. 125,670.

Retained earnings. 53,460. 60,950.

Total stockholders' equity, 179,130. 186,620.

Total liabilities & stockholders' equity. $248,460. $247,450.

Equipment with an original cost of $34,100was sold for $19,560. The book value of the equipment was $18,720

.On June 1, 2014, the company purchased new equipment for cash at a cost of $19,030.

At the end of the year the company issued notes payable for $10,060cash. The note will mature on December 31, 2018

.The company paid $19,920in cash dividends for the year.

Using the indirect method, prepare Carlee Instruments' statement of cash flows for 2014.