Dec. 31, 2014 Dec. 31, 20Y3 Assets Cash $360,920 Accounts receivable (net) Inventories Prepaid expenses Land Buildings $443,240 665,280 887,880 31,640 302,400 1,713,600 (466,200) 781,200 (214,200) 106,960 $4,251,800 592,200 1,022,560 25,200 302,400 1,134,000 (414,540) 781,200 (191,520) 1 12,000 $3,724,420 Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment equipment Patents Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable $837,480 32,760 $927,080 25,200 87,080 Salaries payable 78,960 224,000 Mortgage note payable, due in nine years Bonds payable Common stock, $5 par 390,000 50,400 200,400 Total assets $4,251,800 $3,724,420 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable $837.480 32,760 78,960 224,000 $927,080 25,200 87,080 Salaries payable Mortgage note payable, due in nine years Bonds payable Common stock, $5 par Paid-in capital: Excess of issue price over par-common stock 200,400 366,000 2,512,200 390,000 50,400 126,000 2,118,660 Retained earnings Total liabilities and stockholders' equity $4,251,800 $3,724,420 An examination of the income statement and the accounting records pealed the following additional information applicable to 2014: a. Net income, $524,580. b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680. c. Patent amortization reported on the income statement, $5,040. d. A building was constructed for $579,600. e. A mortgage note for $224,000 was issued for cash. f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable. g. Cash dividends declared, $131,040. Required: Prepare a statement of cash flows, using the Indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in or any negative adjustments. 74340 Patent amortization 5,040 Changes in current operating assets and liabilities: Increase in accounts receivable -73,080 Decrease in inventories 134.680 Increase in prepaid expenses Decrease in accounts payable -89,600 Decrease in salaries payable -8,120 $ 561,400 Net cash flow from operating activities Cash flows from investing activities: Cash paid for construction of building $ - 579,600 -579,600 Net cash flow used for investing activities Cash flows from financing activities: Cash received from issuance of mortgage note 224,000 Cash paid for dividends -123,480 100,52 Net cash flow from financing activities Change in cash Cash at beginning of the year 360,920 Cash at end of the year $443,240 Schedule of Non cash Financing and investing Activities: Issuance of common stock to retire bonds $240,000 Check My Work 1 more Check My Work uses remaining