This exercise continues the accounting for Graham€™s Yard Care, Inc. from the Continuing Exercise in Chapter 10. Assume that Graham€™s Yard Care, Inc. had the following comparative balance sheet at the end of 2015, its second year of operations.

Requirement
Prepare the cash flow statement for Graham€™s Yard Care, Inc. for 2015 using the indirect method. The following additional information applies to 2015:
–  Common shares were issued.
–  No dividends were declared or paid during the year.
–  No equipment was sold during the year and all purchases of equipment were for cash.

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DelTek, Inc Income Statement For the Year Ended December 31, 2014 Sales Revenue Cost of Goods Sold $212,000 84,800 127,200 Depreciation Expense- Patent Depreciation Expense Equipment Salaries Expense Other Operating Expenses Interest Expense Gain on Sale of Equipment Income Before Income Taxes Income lax Expense Net Income 1,200 12,600 52,500 37,500 9,000 2,600) 110,200 17,000 5,100 11,900 DelTek, Inc Balance Sheet As of December 31 SOURCE/ USE 2014 2013 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Accumulated Depreciation Land Patents Total S 8,000 5,200 16,800 42,600 4,300 86,700 (41,000) (34,600) 83,000 35,000 6,000 $250,000 $162,000 12,500 36,700 2,500 143,500 4,800 Accounts Payable Accrued Liabilities Salaries Payable Dividends Payable Interest payable Income Tax Payable Mortgage Common Shares Retained Earnings Total 24,300 6,700 14,500 8,600 12,200 3,600 20,000 130,000 30,100 16,200 8,900 10,200 9,200 18,000 4,800 70,000 24,700 $250,000 $162,000