Data for Brecker Inc. are presented in E23-13.

Instructions
Prepare a statement of cash flows using the indirectmethod.

BRECKER INC. COMPARATIVE BALANCE SHEET As oF DECEMBER 31, 2014 AND 2013 Cash Accounts receivable Short-term investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 12/31/14 $ 6,000 62,000 35,000 40,000 5,000 12/31/13 $7,000 51,000 18,000 60,000 4,000 154,000 (35,000) 46,000 $313,000 130,000 (25,000) 50,000 $295,000 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities and stockholders' equity 46,000 40,000 6,000 4,000 8,000 69,000 4.000 8,000 10,000 60,000 100,000 30,000 57,000 $313,000 100,000 30,000 36,000 $295,000 BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2014 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $338,150 175,000 163,150 120,000 43,150 $11,400 2,000 9,400 33,750 6,750 $27,000