Problem-Solving Strategy eBook Statement of Cash Flows-Indirect Method The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows: Dec. 31,Dec. 31 2014 20 1 Assets Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-equipment $80,100 $97,750 123,080 131,780 175,840 163,330 4,950 358,180 292,630 (93,130) (71,770) $651,230 $618,670 7,160 Total Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings $136,760 129,300 185,600 13,000 326,000 174,000 116,770 651,230 $618,670 21,000 167,470 Total Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows: a. Net income, $129,790. b. Depreciation reported on the income statement, $45,650. c. Equipment was purchased at a cost of $89,840, and fully depreciated equipment costing $24,290 was discarded, with no salvage realized d. The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty e. 8,000 shares of common stock were issued at $20 for cash. Cash dividends declared and paid, $79,090. Required