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Prepare a statement of cash flows using the direct method. FILMORE COMPANY Comparative Balance Sheets December 31 2013 2014 25,000 41,000 Assets 33,000 14,000 25,000
Prepare a statement of cash flows using the direct method. FILMORE COMPANY Comparative Balance Sheets December 31 2013 2014 25,000 41,000 Assets 33,000 14,000 25,000 Cash Accounts receivable Inventory Property, plant, and equipment 73,000 Less: Accumulated depreciation 27,000) Total 23,000 45.000$126,000 78,000 46.000 (24,000) 54,000 135,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $23,000 26,000 20,000 25,000 41,000 $135,000 $ 46,000 23,000 10,000 25,000 22,000 $126,000 FILMORE COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $295,000 194,000 101,000 $28,000 9,000 37,000 64,000 3,000 61,000 14,000 47,000 Additional data: 1. Depreciation expense was $6,000 4s IwSEun EA 2. Dividends of $28,000 were declared and paid. 3. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 originally and had accumulated depreciation of $3,000 at the time of sale. Additional equipment was purchased for $8,000 cash. 4. Instructions are a statement of cash flows using the indivest method. (a) Net cashp $8,000
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