Plushy Home Cash Flow Statement - Indirect Method Directions: Complete the blanks in the cash flow statements with the appropriate numbers to prepare an indirect cash flow statement for Plushy Home as of December 31, 2014 using the indirect method. Balance sheets from 2013 and 2014 are provided along with the income statement for 2014. Please use the information provided in those statements to arrive at your calculations for the cash flow statement. PLUSHY HOME COMPANY Balance Sheet As of December 31, 2013 Current Assets Cash Accounts receivable Inventories Prepaid expenses Total Current Assets S S S S S 75,000 114,000 183,000 8,000 380,000 Current Liabilities: Accounts Payable Salaries and wages payable Current portion of bank loan Deferred revenue Total Current Liabilities Non-Current Liabilities: Bank Loan Total Non-Current Liabilities S S S S S 42,000 12,000 40,000 6,000 100,000 Non-Current Assets: Fumiture and fixtures Buildings and property Accumulated Depreciation) Total Non-Current Assets S S 360,000 360,000 S S S S 100,000 400,000 (90,000) 410,000 Owners' Equity Contributed Capital Retained earnings Total Equity S S S 200,000 130,000 330,000 Total Assets 790.000 Total Liabilities and Owners' Equity S 790,000 PLUSHY HOME COMPANY Balance Sheet As of December 31, 2014 Current Assets: Cash Accounts receivable Inventories Prepaid expenses Total Current Assets S S S S S 158,700 128,000 238,000 13.000 537,700 s S S s S 96,000 5,000 40,000 10,000 151,000 Non-Current Assets: Fumiture and fixtures Buildings and property (Accumulated Depreciation) Total Non-Current Assets Current Liabilities: Accounts Payable Salaries and wages payable Current portion of bank loan Deferred revenue Total Current Liabilities Non-Current Liabilities: Bank Loan Total Non-Current Liabilities Owners' Equity: Contributed Capital Retained earnings Total Equity S S S S S 110,000 390,000 (134,000) 366,000 355.000 355,000 S s S 220,000 177.700 397,700 Total Assets 903,700 Total Liabilities and Owners' Equity $ 903,700 PLUSHY HOME COMPANY Income Statement For the year ending December 31, 2014 Total Revenue Cost of Goods Sold Gross Profit Salaries and wages Marketing expenses Selling, General, and Administrative Insurance expense Depreciation expense Operating Profit Interest Taxes Net Income S S S S S S S s S S S S 890,000 (560,000) 330,000 (126,000) (35,000) (65,000) (8,000) (44,000) 52,000 (1,200) (3,100) 47,700 PLUSHY HOME COMPANY Statement of Cash Flows For the year ending December 31, 2014 Cash Flow from Operating Activities Net income $ S S S S S S S Net cash provided by Operating activities Cash Flow to/from Investing Activities S S s Net cash used from Investing activities Cash Flow to/from Financing Activities S S S Net cash used/from Financing Activities Increase/decrease in Cash Cash, beginning halunce Cash, ending balance s 5 s 75,000 (from 2013 balance sheet)
