comparative balance sheets

at december 31. current year. prioryear

Assets

CASH. $30,400 $30,550

accounts receivable, net. $10,050. $12,150

inventory. $90,100. $70,150

TOTAL CURRENT ASSETTS $130,550. $112,850

Equipment. $49,900. $41,500

accumulated depreciation- equip (22,500). (15,300)

TOTAL ASSETS. $157,950. $139,050

LIABILITIES AND EQUITY

Accounts payable. $23,900. $25,400

salaries payable. 500. 600

TOTAL CURRENT LIAB. 24,400. 26,000

EQUITY

Common stock, no par value. 110,000. 100,000

retained earnings. 23,550. 13,050

total liabilities and equity. 157,950. 139,050

INCOME STATEMENT

FOR CURRENT YEAR ENDED DECEMBER 31

sales. $45,575

costs of goods sold. (18,950)

gross profit. 26,625

salaries expense. 5,550

depreciation expense. 7,200

income before taxes. 13,875

income tax expense. 3,375

net income. $10,500

ADDITIONAL INFO ON CURRENT YEAR TRANSACTIONS

a. No dividends are declared or paid.

b. issued additional stock for $10,000 cash.

c. purchased equipment for cash; no equipment was sold.

USE THE ABOVE INFORMATION TO PREPARE A STATEMENT OF CASH FLOWS FOR THE CURRENT YEAR USING THE INDIRECT METHOD.