Intermediate Account

Statement of cash flow

Use the data below to create a Statement of Cash Flows using the direct method

Wizard Company had avaliable at the end of 2015 the information shown below:

Comparative Balances Sheets	2015	2016
Cash	$20,000	$12,000
Short-term investments	31,500	40,000
Inventory	95,600	90,000
Prepaid expenses	15,600	26,000
Land	200,000	260,000
Buildings	650,000	650,000
Accumulated depreciation-buildings	(75,000)	(57,000)
Equipment	346,000	150,000
Accumulated depreciation-equipment	(41,000)	(60,000)
Patents	68,000	72,000
TOTAL ASSETS	$1,310,700	$1,183,000

Comparative Balance Sheets	2015	2016
Accounts payable	$81,000	$86,900
Income taxes payable	26,800	21,000
Salaries and wages payable	-0-	8,000
Notes payable, short-term	25,000	25,000
Long-term notes payable	50,000	75,000
Bonds payable	600,000	600,000
Discount on bonds payable	(36,015)	(40,865)
Common stock	298,600	206,000
Retained earnings (2015 Dividends = 40,000)	265,315	201,965
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$1,310,700	$1,183,000

Income Statement and Divident Information for the Year Ended December 31, 2015:

Sales Revenue		$1,560,000
Cost of goods sold		976,000
Gross margin		584,000
Operating expenses:
Selling expenses	$160,800
Administrative expensense	116,100
Depreciation/Amortization expense	63,000
Total operating expenses		339,900
Income from operations		244,100
Other Revenues/Expenses:
Gain on sale of land	21,000
Loss of sale of short-term investment	(8,000)
Dividend revenue	4,100
Interest expense	(95,350)	(78,250)
Income before taxes		165,850
Income tax expense		62,500
NET INCOME		$103,350