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

Answer 1