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Stat Statement of Cash Flows The following is Grafton Corporation's comparative balance sheets for 2014 and 2013: December 31. 2014 2013 Cash Accounts receivable
Stat Statement of Cash Flows The following is Grafton Corporation's comparative balance sheets for 2014 and 2013: December 31. 2014 2013 Cash Accounts receivable Inventories Property, plant, and equipment S 400.000 350.000 564.000 584,000 925.000 857.500 1.653.500 1.483.500 Accumulated depreciation Investment in Elkins Corporation Loan receivable Total assets Accounts payable Income taxes payable Dividends payable Capital lease obligation Capital stock, common, $1 par Additional paid-in capital Retained eamings (582,500) (520,000) 152,500 137.500 135,000 53.247.500 $2.892.500 S 507.500 S 477.500 15.000 25.000 40,000 45.000 200,000 250,000 250.000 750.000 750,000 1.485.000 1,345,000 Total liabilities and stockholders' equity $ 3.247.500 $2.891.500 Additional information: 2. 3. 4. On December 31, 2013, Grafton acquired 25 percent of Elkins Corporation's common stock for $137,500. On that date, the carrying value of Elkins' net assets and liabilities (which approximated fair value) was $550,000. Elkins reported income of $60,000 for the year ended December 31, 2014. No dividend was paid on Elkins' common stock during the year. During 2014, Grafton loaned $150,000 to Beckley Company, an unrelated entity. Beckley made the first semi-annual principal payment of $15,000, plus interest at 10 percent, on October 1, 2014. On January 2, 2014, Grafton sold equipment costing $30,000, with a carrying value of $17,500, for $20,000 cash. On January 2, 2014, Grafton entered into a capital leave for an office building. The present value of the annual rental payments is $200,000, which equals the fair value of the building. Grafton made the first lease payment of $30,000 when due on January 2, 2015. 5. Grafton's net income for 2014 was $180,000. 6. Grafton declared and paid cash dividends for 2014 and 2013 as follows: Declared Paid Amount 2014 Dec. 15, 2014 Feb. 28, 2015 2013 Doc. 15, 2013 Feb. 28, 2014 S 40,000 $ 45,000 Required Prepare a statement of cash flows for Grafton Company for 2014 using the indirect method. Include relevant supplemental schedules
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