Use the Gulf Corp. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method Additional Information: a. Purchased equipment for $49,000 cash. b. Sold the long-term investment on January 1, 2014 for $7,000. c. Sold equipment for $17,000 cash that had originally cost $57,000 and had $40,000 of accumulated depreciation. d. Issued $39,000 of bonds payable at face value. e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. Statement of Cash Flows Gulf Corp. Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 208,900 170,000 Short-term investments 259,000 248,000 Accounts receivable 40,500 68,000 Merchandise inventory 16,600 28,000 Long term investment 0 26,000 Equipment 272,000 280,000 Accumulated depreciation (125,000) (140,000) Total assets 672,000 680,000 Cash flows from operating activities Net loss 14,000 Adjust. to reconcile net income to cash provided by oper. act.: x| Depreciation expense 25,000 Cash flows from investing activities Cash flows from financing activities X Net increase (decrease) in cash Cash at beginning of year Cash at end of year Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 30,000 45,000 39,000 389,000 169,000 672,000 71,000 47,000 0 389,000 173,000 680,000 tas con el est August urteanniging Google Chrome lilai.lyyx.com/quiz-servlets/QuizServlet?ccid=11112 Assets Cash Short-term investments Accounts receivable Merchandise inventory Long term investment Equipment Accumulated depreciation Total assets December 31 2014 2013 208,900 170,000 259,000 248,000 40,500 68,000 16,600 28,000 0 26,000 272,000 280,000 (125,000) (140,000) 672,000 680,000 Cash flows from operating activities Netloss 9000 Adjust to reconcile net income to cash provided by oper, act.: Depreciation expense 25,000 Cash flows from investing activities Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 30,000 45,000 39,000 389,000 169,000 672,000 Net increase (decrease) in cash Cash at beginning of year Cash at end of year 71,000 47,000 0 389,000 173,000 680,000 Gulf Corp. Income Statement For Year Ended December 31, 2014 Sales 640,000 Cost Of Goods Sold 560,000 Depreciation expense 25,000 Other expenses 40,000 (625,000) Loss on sale of long-term investment (19,000) 4,000 Net loss