Question:
The 2014 and 2013 balance sheets of Wilson Corporation follow. The 2014 income statement is also provided. Wilson had no noncash investing and financing transactions during 2014. During the year, the company sold equipment for $ 15,400, which had originally cost $ 13,300 and had a book value of $ 11,500. The company did not issue any notes payable during the year but did issue common stock for $ 35,000.
Requirements
1. Prepare the statement of cash flows for Wilson Corporation for 2014 using the indirect method.
2. Evaluate the company€™s cash flows for the year. Discuss each of the categories of cash flows in your response.
Transcribed Image Text:
Wilson Corporation Comparative Balance Sheets December 31, 2014 and 2013 Assets 2014 2013 5 Current assets: 6 Cash 7 Accounts receiv able 8 Inventory 9 Prepaid insurance 10Total current assets 0,500 32,100 86,500 3,400 19,000 29700 94,400 145,600 12 Property, plant, and equipment 13 Less: Accumulated deprecdation 14 Investments 157,000 138000 (27,400) (30,200 15 Total assets 16 5 416300 2 256 200 Liabilities 18 Current liabilities: 19 Accounts payable 20 Wages payable 21 Interest payable 22 Income taxes payable 23 Other accrued expenses payable 24 Total current liabilities 33,800 2,800 700 6,000 7,300 65,600 26 Long-term liabilities 27 Total liabilities 118,000 183,600 136,200 1 Stockholders' equity 29 30 Common stock 31 Retained eamings 32 Total stockholders equity 106,000 2801005 72,600 34 Total liabilities and equity