Condensed financial data of Cadet Company are shown below.
|
CADET COMPANY
Comparative Balance Sheets
December 31
|
|
Assets
|
2012
|
2011
|
|
Cash
|
$ 78,700
|
$ 33,400
|
|
Accounts receivable
|
72,970
|
37,000
|
|
Inventory
|
121,900
|
102,650
|
|
Long-term investments
|
89,500
|
107,000
|
|
Plant assets
|
320,000
|
205,000
|
|
Accumulated depreciation
|
(49,500)
|
(40,000)
|
|
Total
|
$633,570
|
$445,050
|
|
|
|
|
Liabilities and Stockholders" Equity
|
|
|
|
Accounts payable
|
$ 57,700
|
$ 48,280
|
|
Accrued expenses payable
|
15,100
|
18,830
|
|
Bonds payable
|
140,000
|
70,000
|
|
Common stock
|
250,000
|
200,000
|
|
Retained earnings
|
170,770
|
107,940
|
|
Total
|
$633,570
|
$445,050
|
|
CADET COMPANY
Income Statement Data
For the Year Ended December 31, 2012
|
|
Sales
|
|
$294,500
|
|
Gain on sale of plant assets
|
|
3,000
|
|
|
297,500
|
|
Less:
|
|
|
|
Cost of goods sold
|
$104,460
|
|
|
Operating expenses, excluding
|
|
|
|
depreciation expense
|
14,670
|
|
|
Depreciation expense
|
35,500
|
|
|
Income taxes
|
32,100
|
|
|
Interest expense
|
2,940
|
189,670
|
|
Net income
|
|
$107,830
|
Additional information:
1. New plant assets costing $151,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 and accumulated depreciation of $26,000 were sold for $13,000.
4. A cash dividend of $45,000 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.