Carlee Instruments

Income Statement

For the Year Ended December 31, 2014

Sales revenue $127,580

Cost of goods sold 66,590

Gross margin 60,990

Selling expense $13,270

Administrative expense 7,860

Salaries expense 20,970

Depreciation expense 1,430

Interest expense 3,890 47,420

Income before gain and taxes 13,570

Gain on sale of equipment 830

Income tax expense 850

Net income $13,550

Carlee Instruments

Comparative Balance Sheets

As of December 31

2014 2013

Cash $6,210 $4,440

Accounts receivable, net 7,050 5,330

Inventory 32,610 33,200

Total current assets 45,870 42,970

Property, plant, & equipment, net 218,580 220,810

Total Assets $264,450 $263,780

Accounts payable $3,520 $4,770

Accrued expenses 2,350 2,300

Taxes payable 2,200 2,490

Note payable 61,330 50,970

Total liabilities 69,400 60,530

Common stock 126,320 126,320

Retained earnings 68,730 76,930

Total stockholders' equity 195,050 203,250

Total liabilities & stockholders' equity $264,450 263,780

Equipment with an original cost of $35,870was sold for $19,570. The book value of the equipment was $18,740.

On June 1, 2014, the company purchased new equipment for cash at a cost of $17,940.

At the end of the year the company issued notes payable for $10,360cash. The note will mature on December 31, 2018.

The company paid $21,750in cash dividends for the year.

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