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.