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Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net

Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income Additional information: 1. 2. 3. 4. 5. 6. $270,920 24,820 93,000 54,560 9,460 15,000 $776,920 467,760 $309,160 New plant assets costing $200,000 were purchased for cash during the year. Old plant assets having an original cost of $115,000 and accumulated depreciation of $97,000 were sold for $3,000 cash. Bonds payable matured and were paid off at face value for cash. A cash dividend of $52,060 was declared and paid during the year. Common stock was issued at par for cash. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect 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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