Following is information for Goulding Manufacturing Company:
(a) Long-term debt of $500,000 was retired at face value.
(b) New machinery was purchased for $62,000.
(c) Common stock with a par value of $100,000 was issued for $160,000.
(d) Dividends of $22,000 declared in 2012 were paid in January 2013, and dividends of $30,000 were declared in December 2013, to be paid in 2014.
(e) Net income was $450,700. Included in the computation were depreciation expense of $70,000 and intangible assets amortization of $10,000.
............................................................ Dec. 31, 2013 ..................... Dec. 31, 2012
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $191,700 ....................... $130,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000 ......................... 156,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,000 .......................... 160,000
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000 ........................... 87,400
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 ........................... 22,000
Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,900 ............................ 7,000
Wages payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,500 ........................... 17,000
Prepare a statement of cash flows for the year ended December 31, 2013, using the indirect method.