Kate Petusky prepared Addison Controls? balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison?s president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made:

Addison Controls Income Statement For the Year Ended December 31, 2013
Sales revenue	$ 128,000
Cost of goods sold	70,110
Gross margin	57,890
Selling expense	$13,060
Administrative expense	8,210
Salaries expense	20,000
Depreciation expense	1,920
Interest expense	4,340	47,530
Income before gain and taxes	10,360
Gain on sale of Land	908
Income tax expense	814
Net income	$ 10,454

Addison Controls Comparative Balance Sheets As of December 31
2013	2012
Cash	$	5,270	$	4,250
Accounts receivable, net	6,490	5,500
Inventory	31,730	34,360
Total current assets	43,490	44,110
Property, plant, & equipment, net	211,620	215,440
Total Assets	$	255,110	$	259,550
Accounts payable	$	3,500	$	5,980
Accrued expenses	2,500	2,260
Taxes payable	2,140	2,720
Bonds payable	60,020	50,380
Total liabilities	68,160	61,340
Common stock	125,090	125,090
Retained earnings	61,860	73,120
Total stockholders? equity	186,950	198,210
Total liabilities & stockholders? equity	$	255,110	$	259,550

?	Equipment with an original cost of $35,200 was sold for $20,588. The book value of the equipment was $19,680.
?	On June 1, 2013, the company purchased new equipment for cash at a cost of $17,780.
?	At the end of the year the company issued bonds payable for $9,640cash. The bonds will mature on December 31, 2017.
?	The company paid $21,714 in cash dividends for the year.

Using the indirect method, prepare Addison Controls' statement of cash flows for 2013.(If an amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).)

Addison Control Statement of Cash Flows For the Year Ended December 31, 2013
Cash flows from financing activitiesCash, beginning balanceChange in cashCash flows from operating activitiesCash, ending balanceCash flows from investing activitiesAdjustments to net income
Sale of equipmentDecrease in inventoriesIncrease in accounts receivableDecrease in accounts payableDecrease in accounts receivableIncrease in accounts payableIncrease in accrued expensesIncrease in inventoriesDecrease in accrued expensesPurchase of equipmentCash dividends on common stockDecrease in income taxes payableIncrease in income taxes payableNet income / (loss)Issue bondsDepreciationGain on sale of land	$
Cash, ending balanceCash, beginning balanceAdjustments to net incomeCash flows from financing activitiesCash flows from operating activitiesCash flows from investing activitiesChange in cash
DepreciationNet income / (loss)Sale of equipmentGain on sale of landDecrease in income taxes payableIncrease in income taxes payableCash dividends on common stockDecrease in accrued expensesIncrease in accounts payableIncrease in accrued expensesPurchase of equipmentIssue bondsIncrease in accounts receivableIncrease in inventoriesDecrease in accounts receivableDecrease in inventoriesDecrease in accounts payable	$
Increase in accounts receivableDepreciationNet income / (loss)Increase in inventoriesDecrease in accounts receivableIssue bondsSale of equipmentCash dividends on common stockIncrease in accounts payableIncrease in accrued expensesIncrease in income taxes payableGain on sale of landDecrease in accounts payableDecrease in income taxes payableDecrease in inventoriesPurchase of equipmentDecrease in accrued expenses
Gain on sale of landIncrease in accounts receivableDecrease in accounts receivableCash dividends on common stockPurchase of equipmentIncrease in accrued expensesDecrease in income taxes payableIssue bondsNet income / (loss)Increase in accounts payableSale of equipmentDecrease in inventoriesDecrease in accounts payableDepreciationIncrease in income taxes payableDecrease in accrued expensesIncrease in inventories
Net income / (loss)Issue bondsSale of equipmentDecrease in accounts payableDecrease in accrued expensesDepreciationIncrease in inventoriesIncrease in income taxes payableDecrease in inventoriesDecrease in accounts receivableIncrease in accounts receivableIncrease in accounts payablePurchase of equipmentDecrease in income taxes payableGain on sale of landIncrease in accrued expensesCash dividends on common stock
Gain on sale of landIncrease in income taxes payableSale of equipmentCash dividends on common stockDecrease in accounts receivableIncrease in accounts payablePurchase of equipmentDecrease in accrued expensesNet income / (loss)Issue bondsIncrease in accounts receivableDepreciationDecrease in inventoriesIncrease in inventoriesDecrease in accounts payableDecrease in income taxes payableIncrease in accrued expenses
Increase in accounts payableCash dividends on common stockIssue bondsGain on sale of landSale of equipmentNet income / (loss)Increase in accounts receivableDepreciationIncrease in income taxes payableDecrease in accounts receivableDecrease in inventoriesDecrease in accrued expensesIncrease in inventoriesIncrease in accrued expensesDecrease in income taxes payableDecrease in accounts payablePurchase of equipment
Net income / (loss)Decrease in inventoriesSale of equipmentDecrease in income taxes payableIncrease in income taxes payableIncrease in inventoriesDecrease in accrued expensesDecrease in accounts payableDepreciationGain on sale of landPurchase of equipmentIncrease in accounts payableCash dividends on common stockIncrease in accounts receivableIssue bondsIncrease in accrued expensesDecrease in accounts receivable
Net cashusedprovidedbyfinancingoperatinginvestingactivities
Cash, ending balanceCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesAdjustments to net incomeChange in cashCash, beginning balance
Decrease in accrued expensesIncrease in accounts receivableIncrease in income taxes payableDecrease in accounts receivableDecrease in accounts payableDepreciationGain on sale of landDecrease in income taxes payableIncrease in accounts payableSale of equipmentDecrease in inventoriesPurchase of equipmentIssue bondsCash dividends on common stockIncrease in accrued expensesNet income / (loss)Increase in inventories
Purchase of equipmentNet income / (loss)Issue bondsDecrease in accounts payableIncrease in inventoriesDecrease in accounts receivableCash dividends on common stockDecrease in inventoriesIncrease in accounts payableIncrease in accrued expensesDepreciationDecrease in accrued expensesGain on sale of landDecrease in income taxes payableIncrease in accounts receivableIncrease in income taxes payableSale of equipment
Net cashusedprovidedbyoperatinginvestingfinancingactivities
Cash flows from investing activitiesChange in cashAdjustments to net incomeCash flows from operating activitiesCash, beginning balanceCash flows from financing activitiesCash, ending balance
Decrease in income taxes payableIssue bondsNet income / (loss)Decrease in accounts payableIncrease in income taxes payableIncrease in inventoriesIncrease in accounts payableIncrease in accrued expensesSale of equipmentPurchase of equipmentCash dividends on common stockIncrease in accounts receivableDecrease in accrued expensesDepreciationGain on sale of landDecrease in accounts receivableDecrease in inventories
Issue bondsNet income / (loss)Cash dividends on common stockIncrease in accrued expensesDecrease in accounts receivableDepreciationIncrease in accounts receivableIncrease in inventoriesDecrease in accounts payableDecrease in inventoriesIncrease in accounts payableDecrease in accrued expensesDecrease in income taxes payableIncrease in income taxes payablePurchase of equipmentSale of equipmentGain on sale of land
Net cashprovidedusedbyinvestingfinancingoperatingactivities
Cash, ending balanceChange in cashCash flows from investing activitiesAdjustments to net incomeCash flows from operating activitiesCash, beginning balanceCash flows from financing activities
Cash flows from investing activitiesCash flows from operating activitiesCash flows from financing activitiesCash, ending balanceAdjustments to net incomeCash, beginning balanceChange in cash
Cash flows from operating activitiesCash flows from financing activitiesCash, beginning balanceCash, ending balanceCash flows from investing activitiesAdjustments to net incomeChange in cash	$

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3/29/2016 Problem 1323 Print by: Abby Bachman GB519: Measurement and Decision Making 1602D01 / Lab Unit 6 Assignment *Problem 1323 Kate Petusky prepared Addison Controls' balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison's president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made: Addison Controls Income Statement For the Year Ended December 31, 2013 Sales revenue $ 128,000 Cost of goods sold 70,110 Gross margin 57,890 Selling expense Administrative expense Salaries expense $13,060 8,210 20,000 Depreciation expense 1,920 Interest expense 4,340 Income before gain and taxes 47,530 10,360 Gain on sale of Land 908 Income tax expense 814 Net income $ 10,454 Addison Controls Comparative Balance Sheets As of December 31 2013 Cash $ 5,270 Accounts receivable, net 6,490 Inventory 31,730 Total current assets 43,490 Property, plant, & equipment, net 211,620 $255,110 Total Assets Accounts payable $ 3,500 Accrued expenses 2,500 Taxes payable 2,140 Bonds payable 60,020 Total liabilities 68,160 Common stock 125,090 Retained earnings 61,860 Total stockholders' equity 186,950 Total liabilities & stockholders' equity $255,110 2012 4,250 5,500 34,360 44,110 215,440 $259,550 $ 5,980 2,260 2,720 50,380 61,340 125,090 73,120 198,210 $259,550 $ Equipment with an original cost of $35,200 was sold for $20,588. The book value of the equipment was $19,680. On June 1, 2013, the company purchased new equipment for cash at a cost of $17,780. At the end of the year the company issued bonds payable for $9,640 cash. The bonds will mature on December 31, 2017. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 1/3 3/29/2016 Problem 1323 The company paid $21,714 in cash dividends for the year. Using the indirect method, prepare Addison Controls' statement of cash flows for 2013. (If an amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. 15,000 or (15,000).) Addison Control Statement of Cash Flows For the Year Ended December 31, 2013 $ $ by Net cash activities by Net cash activities by Net cash activities http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 2/3 3/29/2016 Problem 1323 $ Question Attempts: 0 of 1 used Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 3/3