Omega Corporation€™s comparative balance sheet accounts worksheet at December 31, 2014 and 2013, follow, together with a column showing the increase (decrease) from 2013 to 2014.

Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 2014 and 2013.

Additional Information:

€¢ On January 2, 2014, Bergen sold all of its marketable investment securities for $95,000 cash.

€¢ On March 10, 2014, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 2014.

€¢ On April 15, 2014, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000.

€¢ On May 25, 2014, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 2015.

€¢ On June 15, 2014, Bergen purchased equipment for $392,000 cash.

€¢ On July 1, 2014, Bergen sold equipment costing $52,000, with a book value of $28,000 for $33,000 cash.

€¢ On December 31, 2014, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year. The first payment was made on December 31, 2014. The present value at December 31, 2014, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a capital lease. The $25,000 lease payment due on December 31, 2015, will consist of $9,000 principal and $16,000 interest.

€¢ Bergen's net income for 2014 is $253,000.

€¢ Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 2014, and paid a common stock dividend of $55,000 during 2014.

Required:

Prepare a cash flow statement for Bergen using the indirect method for 2014.

Additional Information:

€¢ On December 31, 2013, Omega acquired 25% of Belle Company's common stock for $275,000. On that date, the carrying value of Belle's assets and liabilities, which approximated their fair values, was $1,100,000. Belle reported income of $120,000 for the year ended December 31, 2014. No dividend was paid on Belle's common stock during the year.

€¢ During 2014, Omega loaned $300,000 to Chase Company, an unrelated company. Chase made the first semiannual principal repayment of $30,000 plus interest at 10%, on October 1, 2014.

€¢ On January 2, 2014, Omega sold equipment for $40,000 cash that cost $60,000 and had a carrying amount of $35,000.

€¢ On December 31, 2014, Omega entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the building's fair value. Omega made the first rental payment of $60,000, when due, on January 2, 2015.

€¢ Net income for 2014 was $360,000.

€¢ Omega declared and paid cash dividends for 2014 and 2013 as follows:

Required:

Prepare an indirect method statement of cash flows for Omega Corporation for the year ended December 31, 2014, using the worksheet method illustrated in the appendix to thischapter.

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Comparative Balance Sheet Worksheet Increase 2014 2013 (Decrease $ 800,000 1,128,000 1,850,000 3,307,000 (1,165,000) 305,000 270,000 $ 6,495,000 $ 700,000 $ 100,000 (40,000) 135,000 340,000 (125,000) 30,000 270,000 $ 710,000 Cash Accounts receivable 1,168,000 1,715,000 2,967,000 (1,040,000) Inventories Property, plant, and equipment Accumulated depreciation Investment in Belle Company 275,000 Loan receivable -0- $ 5,785,000 Total assets $ 1,015,000 30,000 80,000 S 60,000 (20,000) (10,000) Accounts payable Income taxes payable Dividends payable Capital lease obligation Capital stock, common, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 955,000 50,000 90,000 400,000 -0- 400,000 500,000 1,500,000 2,970,000 $ 6,495,000 500,000 -0- 1,500,000 2,690,000 $ 5,785,000 -0- 280,000 $ 710,000