From the financial statements and additional information provided in Problem 16A-1 for Dent Corporation, prepare a statement of cash flows using the direct method.

In Problem 16A-1

From the following income statement (Figure 16-16), balance sheet (Figure 16-17), and additional data (below) for Dent Corporation, prepare a statement of cash flows using the indirect method.

Additional Data:

1. All Plant and Equipment was purchased for cash.

2. Sold additional 2,500 shares of stock for cash of $2,500.

3. A $1,400 dividend was declared and paid.

4. Short-term notes used to finance inventory.

DENT CORPORATION
INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2013

DENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2013 AND 2012

Sales Cost of Goods Sold Gross Profit 965000 6910000 $2740000 Operating Expenses: Rent Expense Amortization Expense Salary Expense Miscellaneous Expense $ 750000 700000 660000 320000 Total Operating Expenses Net Income 2430000 10000 Assets 2013 2012 Current Assets: Cash Accounts Receivable. Net Merchandise Inventory Prepaid Rent 340000260000 5600 0 450000 2200 00 200000 1000 001200 00 $1220000 $1030o000 Total Current Assets Plant and Equipment: Store Equipment Accum. Amort., Store Equipment $5800000 $5000000 00000 6000 $46000oo $4500 ooo $58200 00 $5530000 Total Plant and Equipment Total Assets Liabilities Current Liabilities: Notes Payable-Short Term Accounts Payable $680000 5200 00 4400 00 480000 $1120000 $1000000 Total Current Liabilities Long-Term Liabilities: Bonds Payable $1250000 $1500000 Total Liabilities Shareholders' Equity Common Shares Retained Earnings $2 250000 $2000000 1200000 10300 00 $3450000 $3030000 $5820000 $5530000 Total Shareholders' Equity Total Liabilities and Shareholders' Equity