Question
The following information is available for the Ehrens Corporation: EHRENS CORPORATION Balance Sheets At December 31 2013 2012 Assets: Cash $ 24,640 $ 23,040 Accounts
The following information is available for the Ehrens Corporation:
EHRENS CORPORATION Balance Sheets At December 31 | ||
2013 | 2012 | |
Assets: | ||
Cash | $ 24,640 | $ 23,040 |
Accounts receivable | 32,180 | 29,400 |
Merchandise inventory | 73,125 | 61,710 |
Long-term investments | 55,900 | 56,400 |
Equipment | 175,500 | 145,500 |
Accumulated depreciation | (33,550) | (31,200) |
Total assets | $327,795 | $284,850 |
Liabilities: | ||
Accounts payable | $ 65,000 | $ 40,380 |
Incomes taxes payable | 10,725 | 10,200 |
Bonds payable | 48,750 | 66,000 |
Total liabilities | $124,475 | $116,580 |
Equity: | ||
Common stock | 117,000 | 96,000 |
Contributed capital in excess of pay | 13,000 | 9,000 |
Retained earnings | 73,320 | 63,270 |
Total equity | $203,320 | $168,270 |
Total liabilities and equity | $327,795 | $284,850 |
EHRENS CORPORATION Income Statement For Year Ended December 31, 2013 | ||
Sales | $240,000 | |
Cost of goods sold | $80,900 | |
Depreciation expense | 29,400 | |
Other operating expenses | 48,000 | |
Interest expense | 2,000 | (160,300) |
Other gains (losses): | ||
Loss on sale of equipment | (8,400) | |
Income before taxes | 71,300 | |
Income taxes expense | 27,650 | |
Net income | $ 43,650 |
Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) $500 was received from the sale of long term investments
(4) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid. (5) Additional shares of stock were issued for $25,000
(6) Paid $17,250 for the early retirement of a bond Prepare a statement of cash flows for the 2013 calendar year using the direct method
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