*P13-12A Condensed financial data of Jhutti Company appear below.

Jhutti Company Comparative Balance Sheets December 31

 

Assets	Â	2014	2013
Cash	Â	$  90,300	$  47,250
Accounts receivable	Â	80,900	57,000
Inventory	Â	121,900	102,650
Investments	Â	84,000	87,000
Equipment	Â	250,000	205,000
Accumulated depreciation—equipment	Â	(46,600)	(40,000)
Â	Â	$580,500	$458,900
  Liabilities and Stockholders’ Equity	Â	Â	Â
Accounts payable	Â	$  53,400	$  48,280
Accrued expenses payable	Â	12,100	18,830
Bonds payable	Â	100,000	70,000
Common stock	Â	240,000	200,000
Retained earnings	Â	175,000	121,790
Â	Â	$580,500	$458,900

 

                                               

 

Jhutti Company Income Statement

For the Year Ended December 31, 2014

 

 

Sales revenue	$297,500	Â
Gain on disposal of plant assets	8,550	$306,050

 

Less:

 

Cost of goods sold	99,460	Â
Operating expenses (excluding	Â
depreciation expense)	14,670
Depreciation expense	47,900
Income taxes	7,270
Interest expense	2,940	Â	172,240
Net income	Â	Â	$133,810

 

Additional information:

1.  Equipment costing $92,000 was purchased for cash during the year.

2.  Investments were sold at cost.

3.  Equipment costing $47,000 was sold for $14,250, resulting in gain of $8,550.

4.  A cash dividend of $80,600 was declared and paid during the year.

 

 

 

 

Instructions

Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns, using letters to cross-reference each entry.

 

 

PROBLEMS: SET B