P13-9A_Sinjh Inc._Cash_Flow Statement

P13-9A Condensed financial data of sinjh Inc. follow.

	Sinjh Inc.
Comparative Balance Sheets
December 31
Assets		2014 2013
Cash		$100,350 $ 48,400
Accounts receivable		92,800 33,000
Inventory		112,500 102,850
Prepaid expenses		29,300 26,000
Long-term investments		140,000 114,000
Plant assets		265,000 242,500
Accumulated depreciation		(47,000) (52,000)
Total		$692,950 $514,750
Liabilities and Stockholders' Equity
Accounts payable		$112,000 $ 67,300
Accrued expenses payable		16,500 17,000
Bonds payable		110,000 150,000
Common stock		220,000 175,000
Retained earnings		234,450 105,450
Total "		$692,950 $514,750
		Sinjh Inc
		Sales revenue Gain on disposal of plant assets	$392,780 5,000
		Less:
		Cost of goods sold	135,460
		Operating expenses, excluding
		depreciation	12,410
		Depreciation expense	45,000
		Income tax expense	27,280
		Interest expense	4,730 224,880
		Net income	$172,900

Additional information:

1. New plant assets costing $80,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $50,000 were sold for $12,500 cash.

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

4. A cash dividend of $43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using the indirect method.

P13-10A – Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.

Prepare a statement of cash flows using the direct method.

P13-9A_Sinjh Inc._Cash_Flow Statement

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