Question

The comparative balance sheets and an income statement for Wang Beauty Products, Inc.,


Income Statement
For the Year Ended December 31, 2014
Sales .......... $1,500,000
Cost of goods sold ..... (797,200)
Gross profit ......... 702,800
Operating expenses
Depreciation expense .... (22,800)
Rent expense ........ (24,000)
Salaries expense ....... (256,000)
Other operating expenses .. (258,000)
Net income ....... $ 142,000

Other Information
1. Purchased land for $112,000.
2. Purchased new equipment for $100,000.
3. Sold old equipment that cost $132,000 with accumulated depreciation of $112,000 for $20,000 cash.
4. Issued common stock for $50,000.

Required
Prepare the statement of cash flows for 2014 using the indirectmethod.


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  • CreatedOctober 12, 2013
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