Question - Hartman, Inc. has prepared the following comparative balance sheets for 2012 and 2013:
|
2013
|
2012
|
|
Cash
|
287000
|
153000
|
|
Accounts Receivable
|
149000
|
117000
|
|
Inventory
|
150000
|
180000
|
|
Prepaid expenses
|
18000
|
27000
|
|
Plant assets
|
1280000
|
1050000
|
|
Accumulated depreciation
|
-450000
|
-375000
|
|
Patent
|
153000
|
174000
|
|
1587000
|
1326000
|
|
|
|
|
Accounts payable
|
153000
|
168000
|
|
Accrued liabilities
|
60000
|
42000
|
|
Mortgage payable
|
|
450000
|
|
Preferred stock
|
525000
|
|
|
Additional paid-in Capital- preferred
|
120000
|
|
|
Common stock
|
600000
|
600000
|
|
Retained earnings
|
129000
|
66000
|
|
1587000
|
1326000
|
1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.
2. The Retained earnings account has been charged for dividends of $158,000 and credited for the net income for the year.
The income statement for 2013 is as follows:
| Sales |
1980000 |
| Cost of Sales |
1089000 |
| Gross profit |
891000 |
| Operating expenses |
670000 |
| Net Incom |
221000 |
Instructions - From the information above, prepare a statement of cash flows (indirect method) for Hartman Inc. for the year ended December 31, 2013. (show me the work and the T-accounts).