Statement of Cash Flows (Indirect Method) The Towne Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: TOWNE COMPANY Income Statement For the Year Ended December 31, 2013 Service Fees Earned Dividend and Interest Income $412,100 18,200 $430,300 Wages and Other Operating Expenses $370,500 Depreciation Expense 67,600 Franchise Amortization Expense 13,000 Loss on Sale of Equipment 9,100 Gain on Sale of Investments Net Loss (22,100) 438,100 $(7,800) Assets TOWNE COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Cash $55,900 $46,800 Accounts Receivable 16,900 23,400 Interest Receivable 5,200 Prepaid Expenses 20,800 10,400 Long-term Investments-Available for Sale 91,000 Fair Value Adjustment to Investments 13,000