Statement of Cash FlowsIndirect Method

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

	For the Year Ended December 31, 2014

Sales revenue	$1,249,060
Cost of goods sold	701,790
Gross profit	$ 547,270
Operating expenses	148,250
Income before interest and taxes	$ 399,020
Interest expense	24,030
Income before taxes	$ 374,990
Income tax expense	149,996
Net income	$ 224,994

Presented here are comparative balance sheets:

	December 31
	2014		2013
Cash	$ 53,840		$ 89,360
Accounts receivable	179,270		129,690
Inventory	230,010		199,160
Prepayments	15,760		24,400
Total current assets	$ 478,880		$ 442,610
Land	$ 748,020		$ 599,090
Plant and equipment	700,390		501,420
Accumulated depreciation	(250,380)		(199,020)
Total long-term assets	$1,198,030		$ 901,490
Total assets	$1,676,910		$1,344,100
Accounts payable	$ 129,970		$ 149,000
Other accrued liabilities	66,900		62,830
Income taxes payable	88,430		110,290
Total current liabilities	$ 285,300		$ 322,120
Long-term bank loan payable	$ 348,380		$ 298,310
Common stock	$ 552,970		$ 400,930
Retained earnings	490,260		322,740
Total Stockholders' Equity	$1,043,230		$ 723,670
Total liabilities and Stockholders' Equity	$1,676,910		$1,344,100

Other information is as follows:

Dividends of $57,474 were declared and paid during the year.

Operating expenses include $51,360 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 18.01% (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 $51,360.

Required:

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Prepare a statement of cash flows for 2014 using the indirect 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
		$
Adjustments to reconcile net income to net cash provided by operating activities:
		$
Cash Flows from Investing Activities
		$
		$
Cash Flows from Financing Activities
		$
		$
		$
Cash balance, December 31, 2013
Cash balance, December 31, 2014		$