The following financial statements were drawn from the records of

The following financial statements were drawn from the records of Boston Materials, Inc.:

The following financial statements were drawn from the records of

Income Statement
For the Year Ended December 31, 2014
Sales revenue ....... $450,000
Cost of goods sold ...... (212,000)
Gross margin ........ 238,000
Operating expenses
Salary expense ........ (96,000)
Depreciation expense .... (18,500)
Utilities expense ....... (7,500)
Operating income ...... 116,000
Nonoperating items
Interest expense ....... (3,500)
Gain on sale of equipment ... 1,500
Net income ........ $114,000

Additional Information
1. Sold equipment costing $48,000 with accumulated depreciation of $26,000 for $23,500 cash.
2. Paid a $50,000 cash dividend to owners.

Required
Analyze the data and prepare a statement of cash flows using the directmethod.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...