Prepare a statement of cash flows for hartman inc

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Question - Hartman, Inc. has prepared the following comparative balance sheets for 2012 and 2013:


2013

2012

Cash

287000

153000

Accounts Receivable

149000

117000

Inventory

150000

180000

Prepaid expenses

18000

27000

Plant assets

1280000

1050000

Accumulated depreciation

-450000

-375000

Patent

153000

174000


1587000

1326000




Accounts payable

153000

168000

Accrued liabilities

60000

42000

Mortgage payable


450000

Preferred stock

525000


Additional paid-in Capital- preferred

120000


Common stock

600000

600000

Retained earnings

129000

66000


1587000

1326000

1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained earnings account has been charged for dividends of $158,000 and credited for the net income for the year.

The income statement for 2013 is as follows:

Sales 1980000
Cost of Sales 1089000
Gross profit 891000
Operating expenses 670000
Net Incom 221000

Instructions - From the information above, prepare a statement of cash flows (indirect method) for Hartman Inc. for the year ended December 31, 2013. (show me the work and the T-accounts).

Reference no: EM131839344

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