Question 1 Brecker Inc , a greeting card company, had the following statements prepared as of December 31, 2014 BRECKER INC COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2014 AND 2013 12 31 14 12 31 13 Cash $6,194 $9,199 Accounts receivable 62,138 48,813 Short term investments (available for sale) 34,868 18,132 Inventory 40,072 59,945 Prepaid rent 4,843 4,148 Equipment 153,810 129,000 Accumulated depreciationequipment (34,966 ) (25,058 ) Copyrights 45,853 49,869 Total assets $312,812 $294,048 Accounts payable $45,819 $42,029 Income taxes payable 3,830 5,930 Salaries and wages payable 7,959 3,856 Short term loans payable 8,111 10,100 Long term loans payable 60,067 67,040 Common stock, $10 par 101,670 101,670 Contributed capital, common stock 31,650 31,650 Retained earnings 53,706 31,773 Total liabilities stockholders equity $312,812 $294,048 BRECKER INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014 Sales revenue $338,117 Cost of goods sold 174,850 Gross profit 163,267 Operating expenses 119,270 Operating income 43,997 Interest expense $11,416 Gain on sale of equipment 1,844 9,572 Income before tax 34,425 Income tax expense 6,763 Net income $27,662 Additional information 1 Dividends in the amount of $5,729 were declared and paid during 2014 2 Depreciation expense and amortization expense are included in operating expenses 3 No unrealized gains or losses have occurred on the investments during the year 4 Equipment that had a cost of $28,800 and was 70 depreciated was sold during 2014 Prepare a statement of cash flows using the direct method (Show amounts that decrease cash flow with either a sign e g 15,000 or in parenthesis e g (15,000) )

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Question 1 Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2014. BRECKER INC. COMPARATIVE BALANCE SHEET AS OF

Question 1

Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2014.

BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2014 AND 2013
	12/31/14		12/31/13
Cash	$6,194		$9,199
Accounts receivable	62,138		48,813
Short-term investments (available-for-sale)	34,868		18,132
Inventory	40,072		59,945
Prepaid rent	4,843		4,148
Equipment	153,810		129,000
Accumulated depreciationequipment	(34,966	)	(25,058	)
Copyrights	45,853		49,869
Total assets	$312,812		$294,048

Accounts payable	$45,819		$42,029
Income taxes payable	3,830		5,930
Salaries and wages payable	7,959		3,856
Short-term loans payable	8,111		10,100
Long-term loans payable	60,067		67,040
Common stock, $10 par	101,670		101,670
Contributed capital, common stock	31,650		31,650
Retained earnings	53,706		31,773
Total liabilities & stockholders equity	$312,812		$294,048

BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014
Sales revenue		$338,117
Cost of goods sold		174,850
Gross profit		163,267
Operating expenses		119,270
Operating income		43,997
Interest expense	$11,416
Gain on sale of equipment	1,844	9,572
Income before tax		34,425
Income tax expense		6,763
Net income		$27,662

Additional information:

1.		Dividends in the amount of $5,729 were declared and paid during 2014.
2.		Depreciation expense and amortization expense are included in operating expenses.
3.		No unrealized gains or losses have occurred on the investments during the year.
4.		Equipment that had a cost of $28,800 and was 70% depreciated was sold during 2014.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)