Prepare a statement of cash flows of lemere inc

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Reference no: EM13526601

Condensed financial data of Lemere Inc. follow.

LEMERE INC. 
Comparative Balance Sheets 
December 31

Assets

2012

2011

Cash

$ 80,800

$ 48,400

Accounts receivable

87,800

38,000

Inventory

112,500

102,850

Prepaid expenses

28,400

26,000

Long-term investments

138,000

109,000

Plant assets

285,000

242,500

Accumulated depreciation

(50,000)

(52,000)

Total

$682,500

$514,750




Liabilities and Stockholders" Equity



Accounts payable

$102,000

$ 67,300

Accrued expenses payable

16,500

21,000

Bonds payable

110,000

146,000

Common stock

220,000

175,000

Retained earnings

234,000

105,450

Total

$682,500

$514,750

LEMERE INC. 
Income Statement Data 
For the Year Ended December 31, 2012

Sales


$388,460

Less:



Cost of goods sold

$135,460


Operating expenses, excluding



depreciation

12,410


Depreciation expense

46,500


Income taxes

27,280


Interest expense

4,730


Loss on sale of plant assets

7,500

233,880

Net income


$154,580

Additional information:

1. New plant assets costing $100,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.

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

4. A cash dividend of $26,030 was declared and paid during the year.

Instructions

Prepare a statement of cash flows using the indirect method.

Reference no: EM13526601

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