Statement of Cash Flows (Indirect Method) The Dairy Company's income statement and comparative balance sheets as of December 3 DAIRY COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue Cost of Goods Sold $770,000 $484,000 Wages and Other Operating Expenses 104,500 Depreciation Expense 24,200 Goodwill Amortization Expense 7,700 Interest Expense 11,000. Income Tax Expense 39,600 Loss on Bond Retirement Net Income 5,500 676,500 $93,500 DAIRY COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $29,700 $19,800 Accounts Receivable 58,300 52,800 Inventory 113,300 119,900 Prepaid Expenses 13,200 11,000 Plant Assets 396,000 369,600 Accumulated Depreciation (95,700) (92,400) Goodwill 47,300 55,000 Total Assets $562,100 $535,700 Liabilities and Stockholders' Equity Accounts Payable $35,200 $28,600 Interest Payable 4,400 7,700 Income Tax Payable 6,600 8,800 Bonds Payable 66,000 132,000 Common Stock 277,200 250,800 Retained Earnings 172,700 107,8001 Total Liabilities and Stockholders' Equity $562,100 $535,700 During the year, the company sold for $18,700 cash old equipment that had cost $1,600 and had $20,900 accumulated depreciation, New equipment worth $44,000 was acquired in exchange for $4,000 of bonds payable Bonds payable of $132,000 were retired for cash at a loss. A $200 cash didend was declared and paid. All stock ones were forcash Required Compute the change in cash that occurred in 2013 Prepare a statement of cash flows using the indrect method Change in Cash during 2013 Use a megve sign with cash nurinw awers DAIRY COMPANY Statement of Cash Flow For Year Ended December 31, 2013 Cash Flow from Operating s A Cash Tided by Operating Act Cash Flow from investig Cash flow from Financing Activities Been of Cash Used by Financing Ac Charge C Cash at Beginning of Year Cash at tod af Year Statement of Cash Flows Ondirect Method) The Dairy Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 folow DAIRY COMPANY Income Statement For the Year Ended December 31, 2013 Can of God Wigs and Diner Operating tapes 104500 24300 Get Amortization Expense 2200] 11000 39400 4770000 5500 500 DAIRY COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 A Cast $2700 14.300 111300 SL330 11000 Pantat Alcumulated Depa 3000 700 1940 Goodw 41300 15.000 stal STAL 900 55.200 Liabilities and Stockers Equity $35,200 478400 4,400 come as Payab Bonds Fayat 6100 00 64,000 132,000 Common Sk Reading 277.200 172,700 25000 1000 1535706 During the year, the company sold for $18,700 cash old equipment that had cost 139,600 and had $20,900 accumulated depreciation Now equipment worth $46,000 wat acqued in change tr $4,000 af bands payable Bonds) payable of $132.000 were retired for castrat a loss. A $25,000 cash dividend was declared and pad. All stock issuances were for cash Required MacBlock Av payable of $132,000 were retired for cash at a loss. A $28,600 cash dividend was declared and paid. All s Required a. Compute the change in cash that occurred in 2013. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 $ b. Use a negative sign with cash outflow answers. DAIRY COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Goodwill Amortization Loss on Bond Retirement Accounts Receivable Inventory Prepaid Expenses Accounts Payable Interest Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Equipment Cash Flow from Financing Activities Retirement of Bonds Payable Issuance of Common Stock Payment of Dividends Cash Used by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year = $