Preparing the statement of cash flows-indirect method
The 2012 comparative balance sheet and income statement of Appleton Group, Inc., follow. Appleton had no noncash investing and financing transactions during 2012.
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APPLETON GROUP, INC. Comparative Balance Sheet December 31, 2012 and 2011
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2012
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2011
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Increase (Decrease)
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Current assets:
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Cash and cash equivalents
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$ 9,300
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$ 15,300
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$ (6,000)
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Accounts receivable
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42,000
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43,200
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(1,200)
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Inventories
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97,100
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93,700
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3,400
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Plant assets:
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Land
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41,100
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16,000
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25,100
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Equipment, net
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101,200
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94,300
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6,900
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Total assets
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290,700
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$ 262,500
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$ 28,200
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Current liabilities:
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Accounts payable
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$ 25,600
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$ 26,600
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$ (1,000)
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Accrued liabilities
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24,000
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22,800
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1,200
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Long-term liabilities:
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Notes payable
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46,000
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62,000
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(16,000)
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Stockholders' equity:
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Common stock
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140,300
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131,400
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8,900
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Retained earnings
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54,800
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19,700
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35,100
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Total liabilities and stockholders' equity
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$ 290,700
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$ 262,500
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$ 28,200
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APPLETON GROUP, INC. Income Statement Year Ended December 31, 2012
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Revenues:
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Sales revenue
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$ 439,000
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Interest revenue
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11,800
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Total revenues
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$ 450,800
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Expenses:
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Cost of goods sold
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$ 205,500
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Salary expense
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76,500
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Depreciation expense
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15,500
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Other operating expense
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49,500
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Interest expense
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24,300
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Income tax expense
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16,300
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Total expenses
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387,600
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Net income
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$ 63,200
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Requirement
1. Prepare the spreadsheet for the 2012 statement of cash flows. Format cash flows from operating activities by the indirect method.