Exercise The following is the comparative balance sheet of Saudi Co for years 2014, 2013 as at December 31.

Saudi Co. Comparative Balance sheets

December 31, 2014 and 2013

Additional information:

The net income, 28,000;

building and equipment depreciation expense amounts, 15,000 and 3,000 respectively,

equipment that cost 13,500 with accumlated depreciation of 12,500 sold at a gain of 5,300;

equipment purashes, 12,500;

patent amortization, 3,000;

purchase of patent, 1,000;

fund borrowed by issuing notes payable, 25,000;

notes payable repaid, 15,000;

land and building purchased for 162,000 by signing a mortgage for the total cost;

1,500 shares of $20 par value common stock issued for a total of 50,000;

paid cash dividends, 9,000.

Required: Using the indirect method, prepare a statement of cash flow for Saudi Company for the year ended at 2014.

2014 2013 Assets s 94,560 102,430 112.890 s 27,360 75,430 137,890 20,000 Cash NCCOunts receiable tnet) Inventory Prepaid expenses Land Building Accumulated depreciation-building Equipment Puccumulated depreciation equipment Patents Total assets 25,00O 37,000 15,000) 33,00o 14,500) 4,000 $479,380 34,000 24,000) 6,000 $276,680 Liabilities and Stockholders Equity Accounts payable Notes payable (current) Accrued liabilities Mortgage payable Common stock, $10 par value Addditional paid-in capital Retained earnings Total liabilities and stockholders' equity 10.750 10,000 $ 36,750 12,300 162,00o 180.0OO 57.20o 59.43O $479,380 150,0OO 37.200 40,430 $276,680