Statement of Cash Flows Using a Work SheetIndirect Method (Appendix)

Peoria Corp. just completed another successful year, as indicated by the following income statement:

	For the Year Ended December 31, 2014

Sales revenue	$1,251,770
Cost of goods sold	698,250
Gross profit	$ 553,520
Operating expenses	149,660
Income before interest and taxes	$ 403,860
Interest expense	25,000
Income before taxes	$ 378,860
Income tax expense	151,544
Net income	$ 227,316

Presented here are comparative balance sheets:

	December 31
	2014		2013
Cash	$ 52,940		$ 91,690
Accounts receivable	179,690		129,410
Inventory	228,010		200,630
Prepayments	15,350		25,860
Total current assets	$ 475,990		$ 447,590
Land	$ 749,830		$ 599,940
Plant and equipment	701,790		498,190
Accumulated depreciation	(251,810)		(201,430)
Total long-term assets	$1,199,810		$ 896,700
Total assets	$1,675,800		$1,344,290
Accounts payable	$ 128,290		$ 149,620
Other accrued liabilities	68,960		62,390
Income taxes payable	91,740		110,920
Total current liabilities	$ 288,990		$ 322,930
Long-term bank loan payable	$ 349,620		$ 298,900
Common stock	$ 549,540		$ 399,880
Retained earnings	487,650		322,580
Total Stockholders' Equity	$1,037,190		$ 722,460
Total liabilities and Stockholders' Equity	$1,675,800		$1,344,290

Other information is as follows:

Dividends of $62,246 were declared and paid during the year.

Operating expenses include $50,380 of depreciation.

Land and plant and equipment were acquired for cash, and additional stock was issued for cash. Cash also was received from additional bank loans.

The president has asked you some questions about the year's results. She is very impressed with the profit margin of 18.16% (net income divided by sales revenue). She is bothered, however, by the decline in the company's cash balance during the year. One of the conditions of the existing bank loan is that the company maintain a minimum cash balance of $50,380.

Required:

1. Using the format in the chapter's appendix, prepare a statement of cash flows work sheet. If an amount box does not require an entry, leave it blank.

	Balances			Cash Inflows (Outflows)
Accounts	12/31/14	12/31/13	Changes	Operating	Investing	Financing
Cash	$52,940	$91,690	$-38,750
Accounts Receivable
Inventory
Prepayments
Land
Plant and Equipment
Accumulated Depreciation
Accounts Payable
Other Accrued Liabilities
Income Taxes Payable
Long-Term Bank Loan Payable
Common Stock
Retained Earnings
Net income
Totals	$	$	$	$	$	$
Net increase (decrease) in cash				$