Prepare a statement of cash flows, in proper form, for the year ended

December 31, 2013, using the indirect method.

GALLUP COMPANY

Comparative Balance Sheets

Dec. 31, 2013 Dec. 31, 2012

Assets

Cash $ 13,000 $15,000

Accounts receivable 18,000 24,000

Inventory 32,000 12,000

Long-term investments -0- 18,000

Equipment 60,000 30,000

Acc depreciationequip (18,000) (14,000)

Total assets $105,000 $85,000

Liabilities and Stockholders' Equity

Accounts payable $ 25,000 $13,000

Salaries payable 5,000 8,000

Bonds payable 32,000 44,000

Common stock 40,000 15,000

Retained earnings 3,000 5,000

Total liabilities and stock equity $105,000 $85,000

Additional information:

1 Net income for the year ended December 31, 2013, was $16,000.

2 Cash dividends of $18,000 were declared and paid during the year.

3 Long-term investments that had a book value of $18,000 were sold for $16,000.

4 Sales for 2013 are $120,000.