Jackson Ski Haus had the following statements prepared as of December 31, 2014.

JACKSON SKI HAUS

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31

2014 2013

Cash $ 2,500 $ 4,000

Accounts receivable 103,000 97,000

Short-term investments (Available-for-sale) 96,000 121,000

Inventories 91,000 54,000

Prepaid insurance 4,000 6,000

Ski equipment 89,000 43,000

Accumulated depr.equipment (23,500) (18,000)

Trademarks 79,000 83,000

Total assets $441,000 $390,000

Accounts payable $ 92,200 $ 75,000

Income taxes payable 21,800 15,700

Wages payable 4,000 9,000

Short-term loans payable to bank 23,500 0

Long-term loans payable 75,000 125,000

Common stock, $1 par 100,000 100,000

Additional paid-in capital 20,000 20,000

Retained earnings 104,500 45,300

Total liabilities & equity $441,000 $390,000

JACKSON SKI HAUS

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2014

Sales $540,200

Cost of goods sold 302,000

Gross margin 238,200

Operating expenses 94,000

Operating income 144,200

Interest expense 20,500

Loss on sale of equipment 4,000

Income before income tax 119,700

Income tax expense 40,500

Net income $ 79,200

Additional information:

1. Dividends in the amount of $20,000 were declared and paid during 2014.

2. Depreciation expense and amortization expense are included in operating expenses.

3. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2014.

Instructions

Prepare a statement of cash flows using the indirect method.