P13-9A_Sinjh Inc._Cash_Flow Statement

P13-9A Condensed financial data of sinjh Inc. follow.

		Sinjh Inc.
Comparative Balance Sheets
December 31
Assets	2014 2013
Cash	$100,350 $ 48,400
Accounts receivable	92,800 33,000
Inventory	112,500 102,850
Prepaid expenses	29,300 26,000
Long-term investments	140,000 114,000
Plant assets	265,000 242,500
Accumulated depreciation	(47,000) (52,000)
Total	$692,950 $514,750
Liabilities and Stockholders’ Equity
Accounts payable	$112,000 $ 67,300
Accrued expenses payable	16,500 17,000
Bonds payable	110,000 150,000
Common stock	220,000 175,000
Retained earnings	234,450 105,450
Total	$692,950 $514,750
			Sinjh Inc
			Sales revenue Gain on disposal of plant assets	$392,780 5,000
			Less:
			Cost of goods sold	135,460
			Operating expenses, excluding
			depreciation	12,410
			Depreciation expense	45,000
			Income tax expense	27,280
			Interest expense	4,730 224,880
			Net income	$172,900

Additional information:

1. New plant assets costing $80,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $50,000 were sold for $12,500 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using the indirect method.

P13-10A â€“ Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.

Prepare a statement of cash flows using the direct method.