Statement of Cash Flows (Indirect Method) The Sweet Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 are presented below: SWEET COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue Cost of Goods Sold Wages Expense Depreciation Expense Insurance Expense Interest Expense Income Tax Expense Gain on Sale of Equipment (19,200) 1,003,200 $1,135,200 $608,400 243,600 72,000 15,600 4,400 68,400 $132,000 Net Income SWEET COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Dec. 31, 2013 Dec. 31, 2012 Assets Cash Accounts Receivable Inventory Prepaid Insurance Plant Assets Accumulated Depreciation Total Assets 527,600 37.200 51,600 212,400 151,200 13,200 924,000 (226,800) (210,000) $1,170,000 $967,200 81,600 10,800 1,064,400 Liabilities and Stockholders Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings Treasury Stock $44,400 6,000 14,400 162,000 $32,400 19,200 96,000 792,000 702,000 213,60017,600 (62,400) $967,200 Total Liabilities and Stockholders Equity $1,170,000 Menu 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 S132,000 Depreciation 72,000 Gain on Sale of Equipment (192,000)x (30,000) (61,200) 2400 12,000 6,000 (4,800) Accounts Receivable Increase Increase Inventory Prepaid Insurance Accounts Payable Interest Payable Income Tax Payable Decrease Increase Increase Decrease 109,200 Cash Flow Provided by Operating Activities Menu Sale of Equipment 32400 Purchase of Equipment 20,800x Cash Used by Investing Activities (176.400) Cash Flow from Financing Activities Issuance of Bonds Payable 66,000 90,000 (36,000)V (62.400) 176,400 (9,600) 37.200 Purchase of Common Stock Payment of Dividends Purchase of Treasury Stock Cash Provided by Financing Activities Nes Decrease Cash at Beginning of Year in Cash s 27,600 Cash at End of Year