CAROLINA CORPORATION

Comparative Statements of Financial Position

December 31 2014 2013

Cash ..................................................... $ 43,000 $ 24,000

Accounts receivable, net .......................... 35,000 38,000

Inventory ............................................... 114,000 82,000

Land ...................................................... 120,000 190,000

Building ................................................. 200,000 200,000

Accumulated depreciation ......................... (50,000) (40,000)

Equipment ............................................. 1,030,000 600,000

Accumulated depreciation ......................... (118,000) (94,000)

$1,374,000 $1,000,000

Accounts payable .................................... $ 115,000 $ 100,000

4% Bonds payable .................................. 320,000 -0-

Common shares ...................................... 750,000 750,000

Retained earnings ................................... 189,000 150,000

$1,374,000 $1,000,000

Additional data:

1. Net income for the year was $84,000.

2. Cash dividends were paid.

3. Land was sold for $80,000.

4. Old equipment was sold for $70,000. This equipment had cost $150,000 and had accumulated depreciation of $60,000 to date of sale. New equipment was purchased to replace it.

Instructions: Prepare a statement of cash flows for calendar 2014, using the indirect method.