Newtech Brake Inc began operations on January 1, 2013 Its post closing trial balance at December 31, 2013 and 2014 is shown below along with some other information Other information regarding Newtech Brake Inc and its activities during 2014 1 Assume all accounts have normal balances 2 Cash dividends were declared and paid during the year 3 Plant assets worth $70,000 were purchased during the year by paying cash of $20,000 and issuing a long term note payable for the balance 4 Plant assets were sold during the year Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2014 Analysis Component Newtech Brake Inc s income statement showed a net loss of $7,600 for the year ended December 31, 2014, yet the statement of cash flows shows net cash inflows from operating activities of $4,000 for the same period Explain what this differencemeans Newtech Brake Inc Post Closing Trial Balance Newtech Brake Inc Income Statement For Year Ended December 31, 2014 December 31 2014 Account 2013 Revenues Sales $513,600 Expenses and other Merchandise inventory 43,200 38,800 167,600 18,000 (8,000) Accumulated depreciation167,600 165,600 78,000 7,200 75,200 80,000 98,800 Depreciation expense Gain on sale of plant assets Accounts payable Accrued liabilities Long term notes payable 78,800 5,600 115,200 80,000 79,200 521,200 7,600 Net loss

Question: Newtech Brake Inc. began operations on January 1, 2013. Its post-closing trial balance at December 31, 2013 and 2014 is shown below along with some

Newtech Brake Inc. began operations on January 1, 2013. Its post-closing trial balance at December 31, 2013 and 2014 is shown below along with some other information.

Other information regarding Newtech Brake Inc. and its activities during 2014:
1. Assume all accounts have normal balances.
2. Cash dividends were declared and paid during the year.
3. Plant assets worth $70,000 were purchased during the year by paying cash of $20,000 and issuing a long-term note payable for the balance.
4. Plant assets were sold during the year.

Required
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2014.
Analysis Component: Newtech Brake Inc.â€™s income statement showed a net loss of $7,600 for the year ended December 31, 2014, yet the statement of cash flows shows net cash inflows from operating activities of $4,000 for the same period. Explain what this differencemeans.

Newtech Brake Inc. Post-Closing Trial Balance Newtech Brake Inc. Income Statement For Year Ended December 31, 2014 December 31 2014 Account 2013 Revenues Sales $513,600 Expenses and other: Merchandise inventory 43,200 38,800 167,600 18,000 (8,000) Accumulated depreciation167,600 165,600 78,000 7,200 75,200 80,000 98,800 Depreciation expense... Gain on sale of plant assets.. Accounts payable.... Accrued liabilities Long-term notes payable 78,800 5,600 115,200 80,000 79,200 521,200 7,600 Net loss...