Problem 23-1

The following are Sullivan Corp.s comparative balance sheet accounts at December 31, 2014 and 2013, with a column showing the increase (decrease) from 2013 to 2014.

COMPARATIVE BALANCE SHEETS
		2014			2013			Increase (Decrease)
Cash		$815,100			$699,670			$115,430
Accounts receivable		1,127,900			1,168,500			(40,600	)
Inventory		1,850,300			1,715,700			134,600
Property, plant, and equipment		3,307,600			2,966,900			340,700
Accumulated depreciation		(1,165,500	)		(1,040,300	)		(125,200	)
Investment in Myers Co.		310,960			274,850			36,110
Loan receivable		249,550						249,550
Total assets		$6,495,910			$5,785,320			$710,590
Accounts payable		$1,015,400			$954,700			$60,700
Income taxes payable		29,040			49,640			(20,600	)
Dividends payable		79,680			99,150			(19,470	)
Lease liabililty		400,230						400,230
Common stock, $1 par		499,200			499,200
Paid-in capital in excess of parcommon stock		1,500,300			1,500,300
Retained earnings		2,972,060			2,682,330			289,730
Total liabilities and stockholders equity		$6,495,910			$5,785,320			$710,590

Additional information:

1.		On December 31, 2013, Sullivan acquired 25% of Myers Co.s common stock for $274,850. On that date, the carrying value of Myerss assets and liabilities, which approximated their fair values, was $1,099,400. Myers reported income of $144,440 for the year ended December 31, 2014. No dividend was paid on Myerss common stock during the year.
2.		During 2014, Sullivan loaned $300,750 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $51,200, plus interest at 10%, on December 31, 2014.
3.		On January 2, 2014, Sullivan sold equipment costing $59,530, with a carrying amount of $36,430, for $39,950 cash.
4.		On December 31, 2014, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,230, which equals the fair value of the building. Sullivan made the first rental payment of $60,770 when due on January 2, 2015.
5.		Net income for 2014 was $369,410.
6.		Sullivan declared and paid cash dividends for 2014 and 2013 as shown below.

		2014		2013
Declared		December 15, 2014		December 15, 2013
Paid		February 28, 2015		February 28, 2014
Amount		$79,680		$99,150

Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2014, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)