Statement of Cash FlowsDirect Method

Peoria Corp. just completed another successful year, as indicated by the following income statement:

	For the Year Ended December 31, 2014

Sales revenue	$1,249,080
Cost of goods sold	701,460
Gross profit	$ 547,620
Operating expenses	151,400
Income before interest and taxes	$ 396,220
Interest expense	25,620
Income before taxes	$ 370,600
Income tax expense	148,240
Net income	$ 222,360

Presented here are comparative balance sheets:

	December 31
	2014		2013
Cash	$ 51,860		$ 89,230
Accounts receivable	178,130		130,880
Inventory	228,230		201,830
Prepayments	15,840		24,820
Total current assets	$ 474,060		$ 446,760
Land	$ 748,830		$ 600,420
Plant and equipment	701,660		501,070
Accumulated depreciation	(249,070)		(198,510)
Total long-term assets	$1,201,420		$ 902,980
Total assets	$1,675,480		$1,349,740
Accounts payable	$ 131,970		$ 148,360
Other accrued liabilities	66,060		63,830
Income taxes payable	88,300		109,980
Total current liabilities	$ 286,330		$ 322,170
Long-term bank loan payable	$ 348,070		$ 301,770
Common stock	$ 552,670		$ 403,150
Retained earnings	488,410		322,650
Total Stockholders' Equity	$1,041,080		$ 725,800
Total liabilities and Stockholders' Equity	$1,675,480		$1,349,740

Other information is as follows:

Dividends of $56,600 were declared and paid during the year.

Operating expenses include $50,560 of depreciation.

Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.

The president has asked you some questions about the year's results. She is very impressed with the profit margin of 17.8% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $50,560.

Required:

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Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.

Peoria Corp.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities
		$
Cash payments for:
		$
Total cash payments		$
		$
Cash Flows from Investing Activities
		$
		$
Cash Flows from Financing Activities
		$
		$
		$
Cash balance, December 31, 2013
Cash balance, December 31, 2014		$