The Statement of Cash Flows 215 Problem 14 sed balance sheets of the Spartan Inn are as follows: The condensed bala Spartan Inn Condensed Balance Sheets December 31, 20X1 and 20X2 20X1 Assets Current Assets: 20X2 Cash $ $ Marketable Securities Accounts Receivable Inventory Total Current Assets Investments Property and Equipment: 30,000 50,000 100,000 20,000 200,000 100,000 40,000 50,000 95,000 25,000 210,000 60,000 500,000 5,000,000 1,000,000 (1,600,000) 4,900,000 $5,200,000 500,000 6,000,000 1,100,000 (2,000,000) 5,600,000 $5,870,000 Land Building Equipment Accumulated Depreciation Net Property and Equipment Total Assets Liabilities and Owners' Equity Current Liabilities: Accounts Payable Dividends Payable Current Portion of LTD Total Long-Term Debt Capital Stock Retained Earnings Total Liabilities and Owners' Equity $ 60,000 30,000 100,000 190,000 4,000,000 700,000 310,000 $5,200,000 $ 70,000 50,000 130,000 250,000 4,370,000 700,000 550,000 $5,870,000 Spartan Inn Condensed Income Statement For the year ended December 31, 20X2 $6,000,000 1,000,000 5,000,000 400,000 Other Expenses (except depreciation) 4,500,000 Net Operating Income 100,000 Gain on Sales of Investments 300,000 110,000 Income Taxes $ 290,000 Sales Cost of Sales Gross Profit Depreciation Net Income 216 Chapter 4 tinta Additional information: 1. Dividends declared during 20X2 totaled $50,000. 2. No investments were purchased during 20x2. 3. The current portion of long-term debt at the end of 20X2 was reclassified from noncus rent during 20x2. 4. No equipment or buildings were sold during 20x2. 5. Long-term debt was borrowed to partially finance the building purchase. Required: Prepare the Spartan Inn's SCF for 20X2 using the indirect method. Problem 15