Question:
Kline Corporations
financial statements follow. Additional information contained in the records revealed that equipment, having a cost of $ 52,500 and accumulated depreciation of $ 44,700, was sold for $ 14,342 cash. Also, 5,250 shares of common stock having a par value of $ 10 per share were sold for $ 63,000.
Kline Corporation
Comparative Balance Sheet
December 31, 2013 and December 31, 2012
Required
Prepare a statement of cash flows for 2013 using the indirect method of presenting cash flows from operatingactivities.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Kline Corporation Income Statement For Year Ended December 31, 2013 Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales $1,043,973 12,726 $1,031247 Cost of Goods Sold: Merchandise Inventory, January 1. 2013 Delivered Cost of Purchases Cost of Goods Available for Sale Less Merchandise Inventory, December 31, 2013 Cost of Gcods Sold 416,533 738,255 $1.154,790 442,523 712267 318,980 Gross Profit Operating Expenses: Wages Expense Rant Expense Deprociation Expense, Equipment Repairs Expense Insurance Expense S 132,720 21,000 25,800 3,098 1,260 Total Operating Expenses 183,878 Income from Operations Other Income: $ 135.102 Gain on Disposal of Proparty and Equipment $ 6,542 Other Expenses Interest Expense 830 Income Before Income Tax Income Tax Expense Net Income 5.712 140.814 47367 S 93,447 Kline Corporation Statement of Retained Eamings For Year Ended December 31. 2013 Retained Eamings, January 1. 2013 122 105 Net Income Less Cash Dividends Declared and Paid Increase in Retained Earnings Retained Eamings, December 31, 2013 $93.447 63,000 30.447 $152 552 Incroaso or (Decronsa) 2013 2012 Assets Cash Accounts Recevable (net Merchandise Inventory Prepaid Rent Prepaid Insurance 128,767 27226 23,988 0 31 (52500) 18,900 $765,490$717078 48412 40,265 11498 04,622 442 523 6.300 1.386 263.529 77390 416,535 6,300 1,355 316,029 (93,135) (112,035) Less Accumulated Depreciation Total Assets Liabilities Notes Payable Accounts Payable Wages Payable Income Tax Payable Dividends Payablo Interest Payable Total Liabilities 10,920 $ 25,410 62,622 2,090 10,983 12,600 1,218 $69,888 114,923 33,306 1,092 11,844 12.600 126 $(14.490) 29,316) (998) 861 0 1,092) $(45035) Stockholders Equity $532.550 $4800 2500 Common Stock Paid-in Capital in Excess of Par Value Retained Eamings Total Stockholders Equity Total Liabilities and Stockholders' Equity 10,500 30,447 602 $602,15593.447 $765490 717078 48.412 10,500 152,552 0 122,105