Kate Petusky prepared Addison Controls’ balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison’s president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheet and income statement that Petusky prepared, as well as some notes she made:
Addison Controls
Income Statement
For the Year Ended December 31, 2013
Sales revenue $127,910
Cost of goods sold 69,840 Gross margin 58,070
Selling expense 13,050
Administrative expense 8,110
Salaries expense 20,130
Depreciation expense 1,920
Interest expense 4,020 47,230
Income before gain and taxes 10,840
Gain on sale of land 900
Income tax expense 840 Net income $10,900
Addison Controls
Comparative Balance Sheets
As of December 31 2013 2012
Cash $5,190 $4,360
Accounts receivable, net 6,370 5,520
Inventory 31,790 34,260 Total current assets 43,350 44,140
Property, plant, & equipment, net 211,570 215,330 Total assets $254,920 $259,470
Accounts payable $3,500 $5,940
Accrued expenses 700 760
Salaries payable 1,810 1,590
Taxes payable 2,150 2,690
Bonds payable 60,030 50,010 Total liabilities 68,190 60,990
Common stock 125,050 125,050
Retained earnings 61,680 73,430 Total stockholders’ equity 186,730 198,480
Total liabilities & stockholders' equity $254,920 $259,470
• Equipment with an original cost of $35,050 was sold for $20,260. The book value of the equipment was $19,360.
• On June 1,
