Assignment
Condensed financial data of Belt Corp. for 2014 and 2013 arc resented below.
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FULTON CORP.
Competitive Balance Sheet
As or December 31
|
|
|
2014
|
2013
|
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Cash
|
$ 800
|
$ 600
|
|
Investments
|
-0-
|
200
|
|
Receivables
|
2,250
|
2.100
|
|
Inventory
|
1,600
|
1200
|
|
Plant assets
|
1,600
|
1,200
|
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Accumulated Depreciation
|
600
|
(455)
|
|
|
$5,650
|
$4,845
|
|
Accounts payable
|
$ 750
|
$1,200
|
|
Accrued liabilities
|
330
|
520
|
|
Bonds payable
|
800
|
1,000
|
|
Capital stock
|
1,600
|
1,400
|
|
Retained earrings
|
2,270
|
725
|
|
|
$5,650
|
$4 ,845
|
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FULTON CORP.
Income Statement
Foe the Year Ended December 31, 2014
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|
Sales
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$15,200
|
|
Cost of goods sold
|
10,400
|
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Gross margin
|
4,600
|
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Selling and administrative expense
|
1,205
|
|
Income from operations
|
3,595
|
|
Other ravenous and gains Loss on Sale or investments
|
50
|
|
Income before income tax
|
3,545
|
|
Income ltx expense
|
1.400
|
|
Net income
|
2,145
|
|
Cash dividends
|
600
|
|
Income retained in business
|
$ 1,545
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Additional information:
During the year, $100 common stock was issued in exchange for land. No plant assets were sold in 2014.
Instructions:
Prepare the operating cash flow section of a statement of cash flow using both the indirect method and the direct method.