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Homework answers / question archive / A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet Dec
A comparative balance sheet for Rocker Company appears below:
| ROCKER COMPANY | ||
|---|---|---|
| Comparative Balance Sheet | ||
| Dec. 31, 2014 | Dec. 31, 2013 | |
| Assets | ||
| Cash | $34,000 | $11,000 |
| Accounts receivable | 18,000 | 13,000 |
| Inventory | 25,000 | 17,000 |
| Prepaid expenses | 6,000 | 9,000 |
| Long-term investments | 0 | 17,000 |
| Equipment | 60,000 | 33,000 |
| Accumulated depreciation-equipment | (20,000) | (15,000) |
| Total assets | $123,000 | $85,000 |
| Liabilities and Stockholder's Equity | ||
| Accounts payable | $17,000 | $7,000 |
| Bonds payable | 36,000 | 45,000 |
| Common stock | 40,000 | 23,000 |
| Retained earnings | 30,000 | 10,000 |
| Total liabilities and stockholders' equity | $123,000 | $85,000 |
Additional information:
1. Net income for the year ending December 31, 2014 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Sales for 2017 were $120,000.
Prepare a statement of cash flows for the year ended December 31, 2014 using indirect method.
| Amount | |
|---|---|
| Net Income | $35,000 |
| Increase in Accounts Receivable | (5,000) |
| Increase in Inventory | (8,000) |
| Decrease in Prepaid Expense | 3,000 |
| Loss on Sale of Long-term Investments | 3,000 |
| Depreciation Expense | 5,000 |
| Increase in Accounts Payable | 7,000 |
| Decrease in Bonds Payable | (9,000) |
| Cash Flow from Operating Activities | $31,000 |
| Decrease in Long-Term Investment | 17,000 |
| Increase in Equipment | (27,000) |
| Cash Flow From Investing Activities | ($10,000) |
| Increase in Common Stock | 17,000 |
| Cash Dividends Paid | (15,000) |
| Cash Flow from Financing Activities | $2,000 |
| Increase in Cash | $23,000 |
| Add: Cash - Dec 31, 2013 | 11,000 |
| Cash - Dec 31, 2014 | $34,000 |
