The income statement and additional data of Specialized Services, Inc. follow:

Additional data follow:
a. Collections from customers are $15,000 more than sales.
b. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
c. Payments to employees are $2,000 more than salary expense.
d. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
e. Acquisition of plant assets for cash is $101,000.
f. Proceeds from sale of land total $24,000.
g. Proceeds from issuance of common shares for cash total $30,000.
h. Payment of long-term note payable is $15,000.
i. Payment of dividends is $11,000.
j. Cash balance, June 30, 2013, was $20,000.
Requirement
Prepare Specialized Services€™ cash flow statement for the year ended June 30, 2014. Use the direct method.

Transcribed Image Text:

Specialized Services, Inc Income Statement Year Ended June 30, 2014 Revenues Sales Revenue Dividend Revenue $229,000 8,000 Total Revenues $237,000 Expenses: Cost of Goods Sold Salary Expense Depreciation Expense Advertising Expense Interest Expense Income Tax Expense $103,000 45,000 28,000 12,000 2,000 9,000 199,000 S 38,000 Total Expenses Net Income