Problem A The following balance sheet and select data from the statement of cash flows is from Farrow Industries 2013 financial statements. Farrow Industries Statement of Cash Flows Balance Sheet Operating Section December 31, 2013 Cash collected from customers $ 202,000 2013 2012 Cash paid to suppliers $ (106,250) Assets Cash paid for salaries (32,000) Current Assets Cash paid for utilities $ (9,500) Cash $ 51,700 $ 73,075 $ $ 15,250 $ 22,250 Cash paid for insurance (4,000) Accounts Receivable Prepaid Insurance $ 4,000 8,000 Cash paid for interest (2,275) Merchandise Inventory $ 22,250 18,000 Cash paid for taxes $ (13,550) Total Current Assets $ 93,200 $ 121,325 Equipment $ 209,250 $ 150,000 Chg in Cash from operations $ 34,425 Accumulated Depreciation $ 59,000 $ 45,750 TOTAL ASSETS $ 243,450 $ 225,575 Liabilities Current Liabilities Accounts Payable 9,000 $ 19,000 Notes Wages Payable 2,000 4,000 1. Equipment was sold: Historical Utilities Payable 2,500 7,000 Interest Payable 4,275 3,275 Cost=$10,000; Book Value=$7,000; Cash Taxes Payable 2,500 4,500 received=5,000 Total Current Liabilities $ 20,275 $ 37,775 2. Dividends Paid: $12,650 Notes Payable (LT) 59,500 $ 71,000 3. Payments were made on Long Term Debt Owners Equity 4. Additional shares of stock were issued Common Stock $ 98,500 $ 65,900 Retained Earnings $ 65,175 $ 50,900 TOTAL LIABILITIES & OE $ 243,450 $ 225,575