Sold equipment for $25,000 cash. Purchased equip. costing $100,000 with $25,000 cash and $75,000 trade in...

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Sold equipment for $25,000 cash. Purchased equip. costing $100,000 with $25,000 cash and $75,000 trade in of old equip. Borrowed $4,000 cash by signing a note payable. Paid $41,000 cash to reduce long-term notes payable. Issued 1,000 shares of common stock at $10 per share. Declared and paid $7,000 cash dividends. ABC Corp. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Cash received from customers Cash paid for merchandise Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 $1,567,500 $ (582,000) # (348,500) $(23,500) $25,000 $ (25.000) $4,000 $ (41,000) $10.000 $7.000 $1613.000 B- (1434,000) $579,500 $69,000 $648.500 ABC Corp. Comparative Balance Sheet December 31, 2013 2013 2012 Assets Current Assets Cash $648,500 $69,000 Accounts Receivable $75,000 $82,500 Merchandise Inventory $235,000 $255,000 Prepaid Expenses $14,500 $16,000 Plant Assets Equipment $252,000 $200,000 Accumulated Depreciation (Equipment) Total Assets $1,125,000 $531,500 Liabilities and Equity Current Liabilities Accounts Payable $18,500 $95,500 Long-Term Liabilities Notes Payable $88,000 $75,000 Equity Common Stock, $10 Par $210,000 $200,000 Contributed Capital $25,000 $0 Retained Earnings $783,500 $161,000 Total Liabilities and Equity $1,125,000 $531,500 ABC Corp. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Net Income Adj. to reconcile net income to net cash provided by operating activities Decrease in accounts receivable Decrease in merchandise inventory Decrease in prepaid expenses Decrease in accounts payable Depreciation Expense Loss on sale of equipment Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 ABC Corp. Income Statement For the Year Ended December 31, 2013 Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Other Expenses Total operating expenses Other gains (losses) Loss on Sale of Equipment Income before taxes Income taxes Net Income $42,000 $350,000 $1,560,000 $1,035,000 $640,500 $617,000 Sold equipment for $25,000 cash. Purchased equip. costing $100,000 with $25,000 cash and $75,000 trade in of old equip. Borrowed $4,000 cash by signing a note payable. Paid $41,000 cash to reduce long-term notes payable. Issued 1,000 shares of common stock at $10 per share. Declared and paid $7,000 cash dividends. ABC Corp. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Cash received from customers Cash paid for merchandise Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 $1,567,500 $ (582,000) # (348,500) $(23,500) $25,000 $ (25.000) $4,000 $ (41,000) $10.000 $7.000 $1613.000 B- (1434,000) $579,500 $69,000 $648.500 ABC Corp. Comparative Balance Sheet December 31, 2013 2013 2012 Assets Current Assets Cash $648,500 $69,000 Accounts Receivable $75,000 $82,500 Merchandise Inventory $235,000 $255,000 Prepaid Expenses $14,500 $16,000 Plant Assets Equipment $252,000 $200,000 Accumulated Depreciation (Equipment) Total Assets $1,125,000 $531,500 Liabilities and Equity Current Liabilities Accounts Payable $18,500 $95,500 Long-Term Liabilities Notes Payable $88,000 $75,000 Equity Common Stock, $10 Par $210,000 $200,000 Contributed Capital $25,000 $0 Retained Earnings $783,500 $161,000 Total Liabilities and Equity $1,125,000 $531,500 ABC Corp. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2003 Cash Flows from Operating Activities: Net Income Adj. to reconcile net income to net cash provided by operating activities Decrease in accounts receivable Decrease in merchandise inventory Decrease in prepaid expenses Decrease in accounts payable Depreciation Expense Loss on sale of equipment Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used for financing activities Net increase in cash Cash beginning balance 2003 Cash ending balance 2003 ABC Corp. Income Statement For the Year Ended December 31, 2013 Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Other Expenses Total operating expenses Other gains (losses) Loss on Sale of Equipment Income before taxes Income taxes Net Income $42,000 $350,000 $1,560,000 $1,035,000 $640,500 $617,000