Question

Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer Peebles, Inc. using the indirect method.

Summer Peebles, Inc.
Income Statement Year Ending December 31, 2014

Sales	$1,000.00
Cost of Goods Sold	-$650.00
Depreciation Expense	-$100.00
Sales and General Expense	-$100.00
Interest Expense	-$50.00
Income Tax Expense	-$40.00
Net Income	$60.00

Summer Peebles, Inc.
Balance Sheets as of December 31, 2013 and 2014

Assets	2013	2014
Cash	$50.00	$60.00
Accounts Receivable, Net	$500.00	$520.00
Inventory	$750.00	$770.00
Current Assets	$1,300.00	$1,350.00
Fixed Assets, Net	$500.00	$550.00
Total Assets	$1,800.00	$1,900.00
Liabilities and Equity
Notes Payable to Banks	$100.00	$75.00
Accounts Payable	$590.00	$615.00
Interest Payable	$10.00	$20.00
Current Liabilities	$700.00	$710.00
Long-Term Debt	$300.00	$350.00
Deferred Income Tax	$300.00	$310.00
Capital Stock	$400.00	$400.00

Additional data for the period January 1, 2014 through December 31, 2014 are:

1. Sales on account, $70,000.
2. Purchases on account, $40,000.
3. Depreciation, $5,000.
4. Expenses paid in cash, $18,000 (including $4,000 of interest and $6,000 in taxes).
5. Decrease in inventory, $2,000.
6. Sales of fixed assets for $6,000 cash; cost $21,000 and two-thirds depreciated (loss or gain is included in income).
7. Purchase of fixed assets for cash, $4,000.
8. Fixed assets are exchanged for bonds payable of $30,000.
9. Sale of investments for $9,000 cash.
10. Purchase of treasury stock for cash, $11,500.
11. Retire bonds payable by issuing common stock, $10,000.
12. Collections on accounts receivable, $65,000.
13. Sold unissued common stock for cash, $1,000.

please show calculations.

Answer 1

#	Cash Flow from Operating Activities	$	$
	Net Proft before tax		91650
	Adjustments for:-
+	Depreciation & Amortisation	100
+	Additional Depreciation	5000
+	Loss on Sale of Fixed Assets	1000	6100
-	Increase in Current Assets	50	-50
+	Increase in Current Liabilities	10	10
-	Increase in Account Receivable	20	-20
+	Increase in Accounts Payable	25	25
+	Increase in Interest Payable	10	10
-	Increase in Invenories	20	-20
+	Cash Recvd of Accounts Receivable	65000	65000
-
	Net Cash Flow from Operating Activities		162705
#	Cash flow from Investing activities	$	$
	Purchase of Fixed Assets	-4000	-4000
	Sale of Fixed Assets	6000	6000
	Net Cash used in Investing Activities		2000
#	Cash Flow from Financing Activities	$	$
	Sale of Common Stock	1000	1000
-	Purchase of treasury stock	11500	-11500
-	Payments of Note Payable(100-75)	25	-25
	Long Term Debt increase	50	50
	Net Cash used in Financing Activities		-10475
#	Non Cash Investing & Financing Activities
	Fixed Assets exchanged for bonds payable		30000
	Retire bonds payable by issuing common stock		10000
	WORKING
	Sales	71000
	Cost of goods sold	40650
	cash exps	-18000
	Decrease in inventory	-2000
	Net Income	91650