Here are comparative balance sheets for Velo Company.

Additional information:
1. Net income for 2014 was $93,000.
2. Cash dividends of $35,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2014, but land was sold at cost.

Instructions
Prepare a statement of cash flows for 2014 using the indirectmethod.

Transcribed Image Text:

VELO COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment 2014 $63,000 85,000 170,000 75,000 270,000 (66,000) $597,000 2013 22,000 76,000 189,000 100,000 200,000 (32,000) $555,000 Total Liabilities and Stockholders' Equit Accounts payable Bonds payable Common stock ($1 par) Retained earnings $39,000 150,000 216,000 192,000 $597,000 47,000 200,000 174,000 134,000 $555,000 Total