Selected information from the accounting records of Breda Enterprises. Inc., appears next The firm uses a calendar year as its reporting period Prepare a statement of cash flows for Breda Enterprises for 2014. Use the indirect method Key all figures in the statement of cash flows to the numbered items below. Net income for 2014 is $90.000. Beginning and ending balances in three accounts relating to the firm s customers were as follows: On November 1, 2014. a customer gave the firm a six-month, 8%. $15,000 note in satisfaction of an account receivable of $15,000. Interest is payable at maturity. This was the only note receivable held by the company during 2014. The balances in Merchandise Inventory and Accounts Payable were as follows: During 2014 the firm sold, for $25,000 cash, equipment with a carrying value of $38.000. The firm also purchased equipment for cash. Depreciation expense for 2014 was $42.000. The balance in the Equipment account at acquisition cost decreased $26.000 between the beginning and end of 2014. The balance in the Accumulated Depreciation account increased $11,000 between the beginning and end of 2014. The balances in the Leasehold Asset and Lease Liability accounts were as follows on various dates: $ On December 31, 2013, the firm signed a long-term lease, which, by its terms, qualified as a capital lease. The firm made a payment under the lease of $10.000 on December 31, 2014. On December 31. 2013, the firm signed a long-term lease, which, by its terms, qualified as a capital lease The firm made a payment under the lease of $10.000 on December 31. 2014. The firm declared cash dividends during 2014 of $26.000. of which $10.000 remains unpaid on December 31. 2014. During 2014 the firm paid $8,000 cash for dividends declared during 2013. The firm classifies all marketable securities as available for sale It purchased no marketable securities during 2014 but sold marketable equity securities that had originally cost $4, 500 for $9.100 cash in November 2014. The fair values of marketable equity securities were $4.000 on December 31. 2013. and $10.500 on December 31. 2014 These amounts were also the carrying values of the securities on these two dates Investors in $100.000 face value of convertible bonds of Breda Enterprises converted them into 8.000 shares of the firm's $12 par value common stock during 2014. The common stock had a market value of $15 per share on the conversion date. Breda Enterprises had originally issued the bonds at a premium. Their carrying value on the date of the conversion was $105.000. The firm chose the generally accepted (alternative) accounting principle of recording the issuance of the common stock at market value and recognizing a loss of $15,000. The loss is not an extraordinary item. The firm amortized $1.500 of the bond premium between January 1. 2014. and the date of the conversion
