Problem 13-28 (Part Level Submission) Kate Petusky prepared


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Problem 13-28 (Part Level Submission) 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 $127,930 Cost of goods sold 69,800 Gross margin 58,130 Selling expense 13,100 Administrative expense 8,090 Salaries expense 20,050 Depreciation expense 1,900 Interest expense 4,090 47,230 Income before gain and taxes 10,900 Gain on sale of land 930 Income tax expense 830 Net income $11,000 Addison Controls Comparative Balance Sheets As of December 31 2013 2012 Cash $5,110 $4,380 Accounts receivable, net 6,350 5,600 Inventory 31,750 34,300 Total current assets 43,210 44,280 Property, plant, & equipment, net 211,600 215,300 Total assets $254,810 $259,580 Accounts payable $3,430 $5,970 Accrued expenses 610 800 Salaries payable 1,850 1,560 Taxes payable 2,120 2,690 Bonds payable 60,100 50,010 Total liabilities 68,110 61,030 Common stock 125,100 125,100 Retained earnings 61,600 73,450 Total stockholders’ equity 186,700 198,550 Total liabilities & stockholders’ equity $254,810 $259,580 • Equipment with an original cost of $35,000 was sold for $20,310. The book value of the equipment was $19,380. • On June 1, 2013, the company purchased new equipment for cash at a cost of $17,580. • At the end of the year, the company issued bonds payable for $10,090 cash. The bonds will mature on December 31, 2017. • The company paid $22,850 in cash dividends for the year. Using the direct method, prepare Addison Control’s statement of cash flows for 2013.(If amount decreases cash flow then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).) Addison Controls Statement Of Cashflows For The Year Ended December 31, 2013 Change in cashCash, beginning balanceCash flows from operating activitiesCash flows from financing activitiesCash, ending balanceCash flows from investing activities Payments for income taxes    Collections from customers    Sale of equipment    Payments to suppliers    Issue bonds    Payments for operating expenses    Purchase of equipment    Cash dividends on common stock    Payments to employees $ Sale of equipment    Collections from customers    Payments for income taxes    Payments to employees    Issue bonds    Purchase of equipment    Cash dividends on common stock    Payments for operating expenses    Payments to suppliers Payments to employees    Payments for operating expenses    Payments for income taxes    Payments to suppliers    Purchase of equipment    Collections from customers    Sale of equipment    Cash dividends on common stock    Issue bonds Purchase of equipment    Payments for operating expenses    Payments for income taxes    Collections from customers    Cash dividends on common stock    Payments to suppliers    Sale of equipment    Payments to employees    Issue bonds Cash dividends on common stock    Sale of equipment    Purchase of equipment    Payments to employees    Issue bonds    Collections from customers    Payments to suppliers    Payments for operating expenses    Payments for income taxes Net cash providedused by investingfinancingoperating activities $ Cash flows from operating activitiesCash, beginning balanceCash flows from financing activitiesCash, ending balanceChange in cashCash flows from investing activities Payments to employees    Payments for income taxes    Collections from customers    Issue bonds    Cash dividends on common stock    Payments to suppliers    Payments for operating expenses    Sale of equipment    Purchase of equipment Payment…

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