Red Efectiva, S.A. presented the following financial statements as of December 31, 2013:

Additional information: During 2013, dividends were declared and paid for $ 130,000. The depreciation expenses of the machinery and the amortization expenses of the patent are included in the general expenses.
a) Prepare the statement of cash flows by the indirect method.

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Red Efectiva, S.A. Comparative statement of financial position as of December 31, 2013 and 2012 Dic. 31, 2013 Dic. 31, 2012 Assets: Cash $78.000 $ 91 000 Accounts receivable 728 000 637 000 Short-term investments 455 000 260 000 Inventories 520 000 780 000 Rent paid in advance 65 000 52 000 Machinery 2 080 000 1 690 000 Depr. accumulated machinery (455 000) (325 000) Patent 598 000 650 000 Total assets $4 069 000 $3 835 000 Liabilities and equity: Debts to pay $ 702 000 $ 520 000 Taxes to pay 52 000 65 000 Salaries to pay 104 000 52 000 Short term loans 104 000 130 000 Long term loans 780 000 910 000 Common shares, par value 1 300 000 1 300 000 Common stock premium 390 000 390 000 Retained earnings 637 000 468 000 Total liabilities and capital $4 069 000 $3 835 000 Red Efectiva, S.A. Comparative statement of financial position as of December 31, 2013 and 2012 Dic. 31, 2013 Dic. 31, 2012 Assets: Cash $78.000 $ 91 000 Accounts receivable 728 000 637 000 Short-term investments 455 000 260 000 Inventories 520 000 780 000 Rent paid in advance 65 000 52 000 Machinery 2 080 000 1 690 000 Depr. accumulated machinery (455 000) (325 000) Patent 598 000 650 000 Total assets $4 069 000 $3 835 000 Liabilities and equity: Debts to pay $ 702 000 $ 520 000 Taxes to pay 52 000 65 000 Salaries to pay 104 000 52 000 Short term loans 104 000 130 000 Long term loans 780 000 910 000 Common shares, par value 1 300 000 1 300 000 Common stock premium 390 000 390 000 Retained earnings 637 000 468 000 Total liabilities and capital $4 069 000 $3 835 000

Answer rating: 100% (QA)

INDIRECT METHOD FOR THE YEAR ENDED DECEMBER 31 2013 on Date CASH FLOW FROM OPERATING ACTIVITIES Net ... View the full answer