| | The following are Sullivan Corp.s comparative balance sheet accounts at December 31, 2014 and 2013, with a column showing the increase (decrease) from 2013 to 2014. | COMPARATIVE BALANCE SHEETS | | | | 2014 | | 2013 | | Increase (Decrease) | | Cash | | $814,950 | | | $700,660 | | | $114,290 | | | Accounts receivable | | 1,128,600 | | | 1,168,500 | | | (39,900 | ) | | Inventory | | 1,850,200 | | | 1,714,600 | | | 135,600 | | | Property, plant, and equipment | | 3,306,200 | | | 2,967,500 | | | 338,700 | | | Accumulated depreciation | | (1,165,100 | ) | | (1,040,200 | ) | | (124,900 | ) | | Investment in Myers Co. | | 309,490 | | | 274,470 | | | 35,020 | | | Loan receivable | | 249,840 | | | | | | 249,840 | | | Total assets | | $6,494,180 | | | $5,785,530 | | | $708,650 | | | | | | | | | | | | | | Accounts payable | | $1,014,600 | | | $955,000 | | | $59,600 | | | Income taxes payable | | 29,330 | | | 50,950 | | | (21,620 | ) | | Dividends payable | | 80,610 | | | 99,160 | | | (18,550 | ) | | Lease liabililty | | 398,310 | | | | | | 398,310 | | | Common stock, $1 par | | 499,200 | | | 499,200 | | | | | | Paid-in capital in excess of parcommon stock | | 1,499,700 | | | 1,499,700 | | | | | | Retained earnings | | 2,972,430 | | | 2,681,520 | | | 290,910 | | | Total liabilities and stockholders equity | | $6,494,180 | | | $5,785,530 | | | $708,650 | | Additional information: | 1. | | On December 31, 2013, Sullivan acquired 25% of Myers Co.s common stock for $274,470. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,097,880. Myers reported income of $140,080 for the year ended December 31, 2014. No dividend was paid on Myerss common stock during the year. | | 2. | | During 2014, Sullivan loaned $299,560 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $49,720, plus interest at 10%, on December 31, 2014. | | 3. | | On January 2, 2014, Sullivan sold equipment costing $59,610, with a carrying amount of $36,700, for $39,140 cash. | | 4. | | On December 31, 2014, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $398,310, which equals the fair value of the building. Sullivan made the first rental payment of $59,980 when due on January 2, 2015. | | 5. | | Net income for 2014 was $371,520. | | 6. | | Sullivan declared and paid cash dividends for 2014 and 2013 as shown below. | | | | 2014 | | 2013 | | Declared | | December 15, 2014 | | December 15, 2013 | | Paid | | February 28, 2015 | | February 28, 2014 | | Amount | | $80,610 | | $99,160 | Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2014, using the indirect method. | | | |
