The following information was taken from the 2012 financial records of Price Restaurant Supply Company:

The company sold a piece of plant equipment for cash that had originally cost $100,000. The accumulated depreciation associated with the equipment at the time of sale was $20,000.RequiredPrepare a statement of cash flows for the year ended December 31, 2012, using both the direct and indirect methods.

Transcribed Image Text:

INCOME STATEMENT Sales S160,000 (100,000) (12,000) (10,000) (11,000) 10,000 S 37,000 Cost of goods sold Depreciation expense Insurance expense Interest expense Gain on sale of plant equipment Net income BALANCE SHEETS 2012 2011 S173,000 60,000 210,000 14,000 275,000 (67,000) S665,000 S 51,000 200,000 3,000 75,000 125,000 211,000 Cash S120,000 65,000 110,000 24,000 350,000 (75,000) S594,000 S 50,000 200,000 5,000 40,000 95,000 204,000 Accounts receivable Inventory Prepaid insurance Plant equipment Less: Accumulated depreciation Total assets Accounts payable Bonds payable Premium on bonds payable Common stock (Si0 par value) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity S665,000 S594,000