The condensed income statement for the year ended December 31, 2014, of Evan Corporation appears as follows:
|
Sales
|
$6,200,000
|
|
|
|
|
|
Cost of Goods Sold
|
$3,400,000
|
|
|
|
|
|
Operating expenses (including depreciation of $205,000)
|
|
|
|
1,650,000
|
|
|
Income Taxes
|
|
|
|
345,000
|
5,395,000
|
|
Net Income
|
|
|
|
|
mce_markernbsp; 805,000
|
| |
|
|
|
|
|
Selected accounts from the company's balance sheets for 2014 and 2013 are as follows:
|
|
2014
|
2013
|
|
Accounts Receivable
|
mce_markernbsp; 980,000
|
$750,000
|
|
Inventory
|
315,000
|
420,000
|
|
Prepaid Expenses
|
87,000
|
75,000
|
|
Accounts Payable
|
320,000
|
250,000
|
|
Accrued Liabilities
|
15,000
|
40,000
|
|
Income Taxes Payable
|
62,000
|
30,000
|
Prepare a schedule of cash flows from operating activities using the indirect method.