Posner Company

Balance Sheet

At December 31

Assets	2015	2014
Cash	$53,000	$50,000
Accounts Receivable	37,000	48,000
Inventory	108,500	100,000
Long-term Investments	0	70,000
Equipment	573,200	450,000
Accumulated Depreciation	(142,000)	(176,000)
Total Assets	$629,700	$542,000
Liabilities and Equity
Accounts Payable	$62,500	$43,800
Notes Payable	0	100,000
Common Stock, $10 par	325,000	285,000
Paid in Capital in Excess of Par	80,000	55,000
Retained Earnings	162,200	58,200
Total Liabilities and Equity	$629,700	$542,000

Posner Company

Income Statement

For the Year Ended, December 31, 2015

Sales		$625,700
Cost of Goods Sold	$340,000
Depreciation Expense	26,000
Other Operating Expenses	68,000	434,000
Income from Operations		191,700
Other Income (Expenses):
Gain on Sale of Investment	4,000
Interest Expense	(6,000)	(2,000)
Income before Taxes		189,700
Income Tax Expense		60,700
Net Income		$129,000

Additional Information:

a. Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200.

b. 5,000 shares of common stock were issued at $13 per share for cash.

c. Cash dividends declared and paid, $25,000.

d. Notes Payable were paid off during the year.

prepare a statement of cash flows using the indirect method.