Home Free Inc. had the following financial information for 2013. Prepare the statement of cash flows using the indirect method for the operating section. Briefly analyze the statement -- what do you learn from it?

Additional information: Old equipment was sold for $1200 cash when the original cost of the equipment sold was $30,800. No new equipment was purchased in 2013. Land was purchased with cash. Assume any new stock was issued for cash. Dividends were paid in Cash.

Enter amounts subtracted or cash paid/used as negative amounts.

Home Free, Inc. Income Statement For Year Ended December 31, 2013
Revenue:
Sales Revenue		270,000
Expenses:
Depreciation Expense	31,000
Salaries Expense	102,000
Rent Expense	22,000
Utilities Expense	5,600
Loss on Sale of Equipment	600
Total Expenses		161,200
Net Income		108,800

Home Free, Inc. Balance Sheet December 31, 2013
Assets:	2013	2012		Liabilities & Equity:	2013	2012
Cash	348,650	426,250		Accounts Payable	12,000	18,750
Accounts Receivable	70,000	110,000		Taxes Payable	3,600	2,400
Supplies	450	850		Total Current Liabilities	15,600	21,150
Inventory	83,000	78,000		Long Term Notes Payable	-	39,000
Total Current Assets	502,100	615,100
				Common Stock	160,000	160,000
Equipment	89,000	119,800		Paid in capital in excess of par value, common stock	285,000	285,000
Less: Accum. Depreciation	(63,000)	(61,000)		Total Paid in Capital	445,000	445,000
Land	150,000	-
Total Plant Assets	26,000	58,800		Retained Earnings	217,500	168,750
TOTAL ASSETS	678,100	673,900		TOTAL LIABILITIES AND EQUITY	678,100	673,900

Home Free, Inc. Statement of Cash Flows For Year Ended December 31, 2013
Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash
Total Adjustments
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Flows from Investing Activities:
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Flows from Financing Activities:
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash Balance, 2012Cash Balance, 2013Net Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash