Statement of Cash Flows (Direct Method) The Huber Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: HUBER COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue Cost of Goods Sold $880,000 $583,000 Wages and Other Operating Expenses 189,200 Depreciation Expense Patent Amortization Expense Interest Expense Income Tax Expense 29,700 6,600 19,800 27,500 Gain on Exchange of Land for Patent (39,600) 816,200 Net Income Assets $63,800 HUBER COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Cash $37,400 $17,600 Accounts Receivable 70,400 53,900 Inventory 93,500 70,400 Land 128,700 176,000 Building and Equipment 485,100 397,100 Accumulated Depreciation (132,000) (110,000) Patent 80,300 Total Assets $694,000 $550,000 Liabilities and Stockholders' Equity Accounts Payable $39,600 $28,600 Interest Payable 14,300 5,500 Income Tax Payable Bonds Payable 7,700 13,200 192,500 82,500 Common Stock 385,000 385,000 Retained Earnings 124,300 90,200 Total Liabilities and Stockholders' Equity $694,000 $550,000